FY06 Budget - Metro Bus

Los Angeles County Metropolitan Transportation Authority Office of Management and Budget One Gateway Plaza Los Angeles, CA 90012-2952

Los Angeles County Metropolitan Transportation Authority

FY06 Budget

FY06 Budget Table of Contents • i

Table of Contents

I. Description of Metro and Strategic Plan Message from the Chief Executive Officer............................................................................... I-1 Metro Profile ............................................................................................................................. I-3 LACMTA Organization Chart................................................................................................... I-6 LACMTA Board of Directors .................................................................................................... I-7 Strategic Planning Process Update ........................................................................................ I-12 Key Performance Indicators and the Agency Scorecard........................................................ I-20

II. Budget Highlights About the Budget ..................................................................................................................... II-1 FY06 Budget Highlights and Major Budget Assumptions..................................................... II-5 Financial Structure Compared to Organizational Structure ................................................ II-12

III. Customer Service Metro Bus and Rail Service.................................................................................................... III-1 Transportation Services ....................................................................................................... III-11

IV. Financial Details by Fund Business-Type Activities .........................................................................................................IV-1

Enterprise Fund ....................................................................................................... IV-1 Capital Program .................................................................................................. IV-6 Debt Program...................................................................................................... IV-7

Governmental Activities .......................................................................................................IV-11 Special Revenue Fund ........................................................................................... IV-13 General Fund ......................................................................................................... IV-22

V. Capital Program Introduction ............................................................................................................................. V-1 Major Construction Projects.................................................................................................... V-2 Infrastructure Improvement and Acquisition Capital Projects.............................................. V-3 Capital Program Project List.................................................................................................... V-5 Capital Project Operating Impact Assessment ..................................................................... V-15


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ii • Table of Contents FY06 Budget

VI. Strategic Business Units Metro Summary Description..................................................................................................VI-1 Summary of FY06 Budgeted FTEs by Department................................................................VI-2 Metro Summary Expenditures Budget...................................................................................VI-4 Metro Operations ....................................................................................................................VI-5 Countywide Planning & Development.................................................................................VI-15 Construction Project Management ......................................................................................VI-21 Communications...................................................................................................................VI-27 Support Services....................................................................................................................VI-32 Chief of Staff .........................................................................................................................VI-43 Board of Directors .................................................................................................................VI-52

VII. Appendix Appendix 1: Metro Budget Process ..................................................................................... VII-1 Appendix 2: Financial Standards Policy .............................................................................. VII-7 Appendix 3: LACMTA FY05-06 Financial Standards.......................................................... VII-9 Appendix 4: LACMTA FY06 Debt Service Schedule......................................................... VII-16 Appendix 5: Propositions A & C, and TDA Admin. Expenditures and Funding............. VII-22 Appendix 6: Summary of Revenues and Carryover by Source ......................................... VII-24 Appendix 7: Activity Based Bus Cost Model ..................................................................... VII-26 Appendix 8: Activity Based Light Rail Cost Model............................................................ VII-28 Appendix 9: Activity Based Heavy Rail Cost Model .......................................................... VII-29 Appendix 10: Modal Operating Statistics ........................................................................... VII-30 Appendix 11: Public Transportation Services Corporation ............................................... VII-32 Appendix 12: Agency Funds ............................................................................................... VII-34 Appendix 13: Description of Metro’s Clientele .................................................................. VII-36 Appendix 14: Service Authority for Freeway Emergencies................................................ VII-44 Appendix 15: Advanced Technology Vehicle Consortium................................................. VII-46 Appendix 16: Consent Decree ............................................................................................ VII-47 Appendix 17: GFOA Award ................................................................................................ VII-49

VIII. Glossary ...............................................................................................................VIII-1

IX. Abbreviations ..............................................................................................................IX-1


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FY06 Budget Table of Contents • iii

ADDENDUM

The Board of Directors adopted the budget for FY06 at its regularly scheduled meeting on Thursday, May 26, 2005.

The Board also adopted an amendment to include an additional $4 million to expand community policing services for the Metro Orange Line. This amendment is included in the official financial information system for Metro.


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This Page Intentionally Left Blank.

I. Description of Metro and Strategic Plan

Description of Metro and Strategic Plan Message from the Chief Executive Officer • I-1

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER

In Fiscal Year 2006, Metro again will be straitjacketed by financial constraints on many fronts, and yet this resilient agency will still push forward on major transit projects that will offer commuters and others new ways to beat traffic and the high price of gas.

The proposed $2.859 billion budget is $153 million less than the current amended budget despite rising fuel, insurance, security and workers’ compensation costs. We have reduced general and administrative spending to absorb these increases including the elimination of 133 full-time equivalent personnel (FTE). On the other hand, Metro needs to add 98 union positions, mostly operators and mechanics, for the federal Consent Decree compliance for continuing Metro Bus improvements and for the Metro Orange Line.

Metro fares will stay the same and there will be a slight increase in bus service hours. That is very good news for our customers and for would-be public transit users, who can save more than $4,000 a year riding Metro instead of commuting solo in their cars and trucks. In the coming year, there will be even more transit options. Consider the following:

The 14-mile Metro Orange Line will open in September. This is a state-of-the-art 14-mile transitway that will link the Metro Rail North Hollywood station with Warner Center in the West San Fernando Valley via an exclusive transitway that once carried freight trains. New 60-foot Metro Liner buses, operating as trains on rubber wheels, will ply the Metro Orange Line at much faster travel times than local buses or even cars slogging along the congested 101 Freeway. Parking for more than 3,000 cars will be conveniently located along the Metro Orange Line, and there also will be a bikeway sidling the transitway.

Four new Metro Rapid lines will be operating. These include service on Santa Monica, Western, Long Beach, and Reseda Boulevards. To better serve our customers, Metro also will deploy 200 new Metro Liner buses with nearly 50 percent more seating capacity than a standard coach.

Huge tunneling boring machines will be lowered into the ground this summer in Boyle Heights as construction of the Metro Gold Line extension to Little Tokyo, Boyle Heights and East Los Angeles proceeds full bore toward a late 2009 opening. It is also possible in Fiscal Year 2006 that Metro could break ground on the Exposition light rail line first phase to Culver City. Certainly, we will be in full swing on preliminary engineering.

I-2 • Message from the Chief Executive Officer Description of Metro and Strategic Plan

We’ve also included in this budget a number of highway projects designed to improve mobility throughout Los Angeles County:

• Interstate 5 carpool lanes in both directions from Route 14 to Route 118.

• Route 14 carpool lanes in both directions from Pearblossom to Avenue P-8.

• Interstate 405/US 101 interchange connector gap closure (Northbound 405 to Eastbound 101)

• Interstate 405 southbound auxiliary and carpool lanes from Waterford to Interstate 10 in West Los Angeles

These accomplishments stand out in sharp relief considering that Metro can expect virtually no support from Sacramento because of the state budget crisis and the prospects for increased federal funding are remote.

That puts Metro in a precarious situation if the agency is saddled with additional financial burdens. Among the risks in this budget are rising fuel prices, the potential for eliminating existing state gas tax funding, and new federal Consent Decree orders to add even more bus service on top of the nearly $1 billion Metro has spent in the past eight years complying with the Consent Decree.

To balance the budget, Metro will be forced to use $77 million in “one-time” revenues, largely sales/leaseback of property.

At Metro our credo is to find creative ways to keep improving mobility. We have become adept at walking a financial tightrope in persistent austere times. We don’t look down or behind us. We just look straight ahead toward a brighter transportation future for Los Angeles County.

Sincerely,

Roger Snoble Chief Executive Officer


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Description of Metro and Strategic Plan Metro Profile • I-3

METRO PROFILE Formed in 1993, the Los Angeles County Metropolitan Transportation Authority (LACMTA), or Metro, serves as transportation planner and coordinator, designer, builder, and operator of the public transportation system for the region. Almost ten million people, nearly one-third of California’s residents, live within Metro’s 1,400+ square-mile service area.

Included among Metro’s primary responsibilities to Los Angeles are the following:

• Operate the second largest bus system in the United States, providing over 94 million vehicle service miles annually to an average of 1.1 million boardings per weekday.

• Operate three light rail lines and one heavy rail line with over 220,000 boardings per weekday.

• Administer and distribute funds for all Los Angeles County transit providers.

• Develop and construct Rapid Bus lines and fixed guideways for buses and multi-passenger vehicles.

• Construct new light and heavy rail lines.

• Provide highway construction funding and traffic flow management.

• Research and develop alternative energy sources for transit vehicles.

• Make decisions regarding air quality, environmental impact, land use, and economic development.

• Promote the use of public transit services and rideshare programs.

Metro headquarters and the Gateway Transit Center are located adjacent to historic Union Station. The Center links Los Angeles County with neighboring counties by providing easy connections for commuters to Metro Bus and Rail, Metrolink and Amtrak.

A Board of Directors governs the LACMTA. With 13 voting members and one non-voting member, the Board of Directors is appointed as follows:

• Five members of the Los Angeles County Board of Supervisors;

• The Mayor of the City of Los Angeles and 3 appointees;

• Four members appointed by the Los Angeles County City Selection Committee; and

• One non-voting member appointed by the Governor.

Though legally separate entities, the LACMTA’s “blended component” units are, in substance, part of Metro’s operations and are included as part of Metro’s financial reporting. Accordingly, the activities of the Public Transportation Services Corporation (PTSC) , Service Authority for Freeway Emergencies (SAFE), two Benefit Assessment Districts (BAD), and the Advanced Technology Vehicle Consortium (ATVC) are also included in the annual budget presentation that follows.

The annual budget and additional information about the organization, programs, and services at Metro can be found on its website at metro.net.

http://www.mta.net/


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I-4 • Metro Profile Description of Metro and Strategic Plan

Demographics

Los Angeles County covers 4,752 square miles, and had a 2003 population of 10,047,000. The County’s population would make it equivalent to the ninth largest state in the nation, just behind Michigan. Los Angeles County’s population is expected to surpass Michigan sometime in 2005. The County has 88 incorporated cities.

A quick demographic profile of Los Angeles County shows the following: 44.6% of the population is Hispanic, 31.1% is White non-Hispanic, 12.0% is Asian-Pacific Islander, and 9.5% is Black (2000 Census). 70% of the population has a high school diploma or more, while 25% has a bachelor's degree or more (2000 Census). Residents of Los Angeles County include people from 140 countries. The county has the largest populations of Mexicans, Armenians, Koreans, Filipinos, Salvadorans, and Guatemalans outside of their respective countries.

Most of the workers in the County use autos or motorcycles to commute to their jobs (85.6%) while 6.6% take public transportation (vs. 4.7% for the U.S. as a whole). The rest, or 7.8%, walk or work at home.

Education

Higher and specialized education is a strength of Los Angeles County, with 159 college and university campuses. These range from California Institute of Technology, the Claremont Colleges, UCLA, and USC, to specialized institutions such as the California Institute for the Arts, the Art Center College of Design, the Fashion Institute of Design and Merchandising, and the Otis Art Institute. Medical education is also a strong point

with two each of medical schools, dental schools, and eye institutes, as well as specialized research and treatment facilities such as the City of Hope.

Economy

The gross product of Los Angeles County in 2003 was $373.2 billion which would make it the 17th largest national economy in the world if the County were a country. There is a diverse economic base in Los Angeles County using 2001 average employment as a measure. The leading industries are:

1) Business and professional management services (including management consulting, engineering and advertising) with 488,600 jobs,

2) Tourism with 314,200 jobs,

3) Health services/bio-med with 305,600 jobs,

4) Direct international trade with 287,000 jobs, and

5) Motion picture/TV production with 246,600 jobs.

The “new economy” of Los Angeles County often is technology-driven, and includes bio-medicine, digital information technology, multimedia, and advanced transportation technology. This reflects the vibrant technological research capabilities of the County and its creative resources and the growing fusion between technology and creativity.

Los Angeles is the second largest major manufacturing center in the U.S., with 605,700 workers in that activity in 2001. The largest components are apparel with 91,400; instruments with 50,900; aircraft and parts with 47,800; printing/publishing and fabricated metal products with 47,200


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Description of Metro and Strategic Plan Metro Profile • I-5

each; food and kindred products with 46,100; industrial machinery with 44,400; and electronic products with 41,200.

International trade is a major component of the area’s economy. The Los Angeles Customs District (including the ports of Long Beach and Los Angeles, Port Hueneme, and Los Angeles International Airport) is the nation’s second largest, based on value of two-way trade. In 2001, this totaled $212.5 billion, compared with $214.1 billion of the leader, New York. Major investments are being made in port and transportation facilities, including the $2.4 billion Alameda Corridor project which was completed in April 2002. There are also three foreign trade zone designations.

Transportation service in Los Angeles County is extensive. In addition to the ports and airports noted above, there are three other commercial airports: Glendale-Burbank-Pasadena, Palmdale Regional, and Long Beach. Besides the extensive freeway system, there is an array of mass transit options including various bus operators, Amtrak, Metrolink (commuter rail), and Metro Rail (subway & light rail). Rail freight service is provided by Burlington Northern Santa Fe and the Union Pacific.

Outlook

According to the LA County Economic Forecast, the economy is expected to continue growing. Non-farm employment

is predicted to grow by 1.6% in 2005 and 1.9% in 2006. The County’s unemployment rate is expected to drop to 6.1% in 2005. Taxable retail sales growth in the County in 2005 will be 5.9%.

The County faces several challenges common to most of California. The military base realignment and closure process threatens Los Angeles Air Force Base (in El Segundo), which supports nearly 112,000 jobs around the state. Also, the State’s budget will face a FY06 deficit of $6-$10 billion which could adversely impact local governments again.

According to the LA Area Chamber of Commerce, the State’s business environment has improved modestly thanks to reforms in “nuisance” lawsuits and workers’ compensation insurance. The Chamber feels, however, that there is the possibility of new legislation that could make the state’s businesses less competitive.

Congestion has become a more prominent issue. Traffic congestion has long been an acknowledged problem, and Metro has been fully engaged in addressing that issue. However, now freight congestion has attracted more attention. This was prompted by the gridlock at the Los Angeles-Long Beach port complex during the second half of 2004. The ports are currently being expanded.


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I-6 • LACMTA Organization Chart Description of Metro and Strategic Plan

LACMTA ORGANIZATION CHART

Board Secretary Chief Ethics Officer

Long Range Planning& Coordination

Transportation Development& Implementation

Programming& Policy Analysis

Chief Planning OfficerCountywide Planning

& Development

QualityManagement

ConstructionSafety

Project EngineeringFacilities

Project EngineeringSystems

ConstructionManagement

ProgramManagement

Chief Capital ManagementOfficer

Construction Project Management

OperationsAdministration

Metro Rail& Control Centers

Facilities

CentralMaintenance

Security &Law Enforcement

Safety & Training

Contract Services

Vehicle & NewTechnology Systems

Gateway CitiesService Sector

San Fernando ValleyService Sector

San Gabriel ValleyService Sector

South BayService Sector

Westside/CentralService Sector

Five Metro BusService Sectors

Deputy CEOChief Operating Officer

METRO Operations

Treasury

Procurement &Material Management

Management AuditServices

Accounting

Office of Management& Budget

Risk Management

InformationTechnology Services

ChiefFinancial Officer

CustomerCommunications

CustomerRelations

CreativeServices

Fare Policy& Programs

PublicRelations

ChiefCommunications

Officer

Administration

Government& Board Relations

Policy, Research& Library Services

Labor/EmployeeRelations

CommunityRelations

Diversity & EconomicOpportunity

Chief of Staff

Chief Executive Officer County Counsel Inspector General

Board of DirectorsLos Angeles County

METRO


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Description of Metro and Strategic Plan LACMTA Board of Directors • I-7

LACMTA BOARD OF DIRECTORS

Frank C. Roberts Board Chairman Mayor City of Lancaster

Mr. Roberts is the Mayor of the City of Lancaster, having been elected as the city’s first elected mayor in 1996 and reelected in 1998, 2000, 2002, and 2004, and as mayor/councilman four years prior. Mr. Roberts retired from teaching at Antelope Valley College in 1996 after 38 years, the last 16 of which were as Division Chairman and Dean of Applied Academics and Technologies. In addition to his current position as Metro Board Chairman, Mr. Roberts also serves on the Boards of Antelope Valley Air Quality Management District and Antelope Valley Transit, and is director of the Los Angeles County Private Industry Council. Mr. Roberts holds a bachelor of science degree in engineering from Cal State University at Los Angeles, a master of science degree in vocational education from UCLA, and a master’s in public administration from Cal State University at Northridge.

James K. Hahn Board 1st Vice Chair Mayor City of Los Angeles

Mr. Hahn was elected Mayor of the City of Los Angeles in June 2001. He served Los Angeles for 16 years as its elected City Attorney (1985-2001) and four years as its elected City Controller (1981-1985). He received a bachelor of arts degree in English and a law degree from Pepperdine University.

Gloria Molina Board 2nd Vice Chair LA County Supervisor 1st Supervisorial District

Ms. Molina is the Chairwoman of the Los Angeles County Board of Supervisors representing the First District. Ms. Molina was first elected to this office in March 1991 and re-elected in 1994, 1998, and 2002. Prior to her election to the Board of Supervisors, Ms. Molina served as State Assemblywoman for the 56th District from 1982 to 1987. In 1987, she was elected to the Los Angeles City Council, on which she represented the First District until 1991. Before her election to public office, Ms. Molina served in the Carter White House and subsequently in the San Francisco Department of Health and Human Services. Ms. Molina continues to remain active in community issues through her memberships with numerous civil rights organizations. Ms. Molina attended East L.A. College and Rio Hondo College.


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I-8 • LACMTA Board of Directors Description of Metro and Strategic Plan

Michael D. Antonovich LA County Supervisor 5th Supervisorial District

Mr. Antonovich is a member of the Los Angeles County Board of Supervisors and represents the Fifth Supervisorial District, having been reelected to his seventh four-year term in 2004. From 1972 to 1978, he served as a member of the California State Assembly. He also served as a member of the Board of Trustees of the Los Angeles Community College District from 1968 to 1973. Mr. Antonovich has held teaching positions with the Los Angeles School District and Pepperdine University. He holds a bachelor of arts degree and master’s degree from California State University, Los Angeles.

Yvonne Brathwaite Burke LA County Supervisor 2nd Supervisorial District

Mrs. Burke is the Los Angeles County Supervisor for the Second Supervisorial District, having been elected in 1992 and reelected in 1996, 2000, and 2004. Mrs. Burke served as a member of Congress from 1972 to 1978, and as a State Assemblywoman from 1966 to 1972. She has served on numerous boards, including the University of California Board of Regents, the Board of Trustees of the Amateur Athletic Foundation (formerly the Los Angeles Olympic Organizing Committee), and Chair of the Los Angeles branch of the Federal Reserve Bank of San Francisco. Mrs. Burke received a B.A. degree in political science from the University of California, Los Angeles, and a J.D. from the University of Southern California School of Law.

John Fasana Mayor City of Duarte

Mr. Fasana, a City of Duarte Councilmember, has represented the 31 San Gabriel Valley cities on the Metro Board since its inception in 1993, serving as Chair for FY02. Mr. Fasana was first elected to the Duarte City Council in November 1987 and reelected in 1991, 1995, 1999, and 2003, serving as Mayor in 1990, 1997, and 2004. As a Councilmember, he promotes Duarte’s interests in transportation, community services, and environmental protection. As Chair of the San Gabriel Valley Council of Governments Transportation Committee, Mr. Fasana has provided policy direction that has led to the creation of the Alameda Corridor East Gateway to America, the Pasadena Metro Blue Line Construction Authority, and the Gold Line Foothill Extension to Montclair. Mr. Fasana currently represents seven cities on the Foothill Transit Executive Board. He also serves as a member of the Metro Board’s Fuel Cell Consortium. Mr. Fasana has worked 24 years with Southern California Edison and is a graduate of Whittier College with a bachelor of arts degree in business administration.


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Don Knabe LA County Supervisor 4th Supervisorial District

Mr. Knabe is a member of the Los Angeles County Board of Supervisors representing the Fourth District. Mr. Knabe was first elected to the Board in 1996 and reelected in 2000 and 2004. He is a White House appointee to the State and Local Elected Officials Senior Advisory Committee to the President’s Homeland Security Advisory Council on Homeland Security. Mr. Knabe is a former Mayor and Councilman of the City of Cerritos and former Chief of Staff to County Supervisor Deane Dana. Mr. Knabe holds a bachelor’s degree in business administration from Graceland College in Lamoni, Iowa.

Tom LaBonge Council Member City of Los Angeles

Mr. LaBonge is serving his first full term as a Los Angeles City Councilmember representing the 4th councilmanic district. He was first elected in 2001 to serve the last 16 months of the four-year term that was vacated upon the death of the district’s prior representative, John Ferraro, who was also Council President. Mr. LaBonge served 15 years as Mr. Ferraro’s Chief Field Deputy before he was asked to join the administration of Mayor Richard J. Riordan as his Special Assistant. After seven years with the Mayor’s Office, Mr. LaBonge was named Director of Community Relations for the Los Angeles Department of Water and Power.

Martin Ludlow Council Member City of Los Angeles

Mr. Ludlow was elected to the L.A. City Council in June 2003, representing the 10th Council District. Mr. Ludlow is Chair of the City Council’s newly-formed Conventions, Tourism, Entertainment Industry and Business Enterprise Committee, and Vice Chair of the Housing, Community and Economic Development Committee. He is also a member of the Arts, Parks, Health and Aging Committee, and was appointed to the Metro Board by Mayor Hahn. Mr. Ludlow’s first job in politics was as a Washington, D.C., intern with Congressman Julian Dixon. Mr. Ludlow has a B.S. degree in criminal justice from California State University, Los Angeles.


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I-10 • LACMTA Board of Directors Description of Metro and Strategic Plan

Pam O'Connor Mayor City of Santa Monica

Ms. O’ Connor has served on the Santa Monica City Council since 1994 and has served as that city’s mayor three times (in 1997, 1999, and 2005). She is a member of the Southern California Association of Governments’ Regional Council and is on the Board of Directors of the Local Government Commission. She also serves on committees for the League of California Cities and the National League of Cities. Ms. O’Connor works as a private consultant, specializing in historic preservation. She has worked throughout Southern California on projects, including the rehabilitation of Los Angeles’ City Hall and on numerous buildings at UCLA and USC. Ms. O’Connor earned a B.S. degree in journalism from Southern Illinois University and holds masters’ degrees in historic preservation planning and in technology management from Eastern Michigan University.

Ed Reyes Council Member City of Los Angeles

A native of Northeast Los Angeles, Councilmember Ed P. Reyes represents many of the communities where he once grew up and where he resides today with his wife Martha and their four children. With a master’s degree from UCLA in architecture and urban planning, Councilmember Reyes, over the years, has creatively used a series of planning and zoning tools to address such issues as housing and transportation throughout Los Angeles. As one of the newest Metro Board members and one-time chair of the Metro Gold Line Authority, Councilmember Reyes hopes to work closely with his colleagues and local residents to address the many transportation challenges that lie ahead for the entire region.

Zev Yaroslavsky LA County Supervisor 3rd Supervisorial District

Mr. Yaroslavsky, the immediate past chairman of the Metro Board, is a member of the Los Angeles County Board of Supervisors representing the Third Supervisorial District, having been elected to this office in November 1994. Mr. Yaroslavsky served as a member of the Los Angeles City Council between 1975 and 1994. The Los Angeles native earned his bachelor’s degree in history and economics from UCLA in 1971 and a master’s degree in history in 1972.


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Douglas R. Failing Ex-officio Member Appointed by Governor

As a District Director of the California Department of Transportation, Mr. Failing is responsible for the day-to-day operation of the nearly 2,600 Caltrans employees serving District 7, which includes Los Angeles and Ventura Counties. Prior to his appointment in June 2002, he served as District 7’s Chief Deputy District Director. Mr. Failing has also represented Caltrans on the Alameda Corridor Transportation Authority Governing Board. Mr. Failing is a Registered Civil Engineer in the State of California and was an Executive Board member of the Institute for the Advancement of Engineering (IAE) and past president of the IAE – College of Fellows. Mr. Failing earned his bachelor of science degree in civil engineering from Michigan Technological University.


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I-12 • Strategic Planning Process Update Description of Metro and Strategic Plan

STRATEGIC PLANNING PROCESS UPDATE

The FY04 version of the strategic plan identified seven strategic goals and seven goal teams who met to discuss strategic approaches to existing agency-wide programs, projects and services. More importantly, the goal teams were charged or tasked to determine how this agency will measure its success. This open collaborative process enabled Metro's Executive Management Team an opportunity to break down departmental silos, work better together as a cross-functional and integrated team and to develop new ways of thinking.

Metro's Executive Management Team met on several different occasions to update the FY05 version of the strategic plan. The Executive Management Team reaffirmed their 2005 team commitment to continuous improvement of an efficient and effective transportation system for Los Angeles County, through the identification of five strategic goals. Each strategic goal has one or more objectives, defined by one or more implementation strategies which have been aligned to a series of recommended action steps intended to improve overall operational performance.

The updated FY05 Metro Strategic Performance Plan will continue to be used in FY06 as the basis for agency-wide direction, decisions and activities. The strategic plan is designed to be a "living document" which means it is an "evolving plan" and not a rigid or fixed document. For this reason, a "quarterly review" process has been established to track and measure the achieved key performance indicators, which permits an opportunity to realign the strategic goals, objectives and strategies.

Each strategic goal has an established outcome or key performance indicator and performance measures which have been aligned to key management owners and team support partners for improved management accountability, productivity, and organizational performance.

Each year the CEO will reassess the agency’s performance, goals and objectives based upon budget appropriations. The programs and resources listed in the agency-wide strategic plan will be realigned annually based on budget allocations and projections as part of Metro’s ten-year forecast.


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Description of Metro and Strategic Plan Strategic Planning Process Update • I-13



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STRATEGIC PLAN FY03 – FY07 (UPDATED FY05)

Vision METRO . . . leading the nation in safety, mobility and customer satisfaction!

Mission METRO is responsible for the continuous improvement of an efficient and effective transportation system for Los Angeles County.

Core Business Goals

Goal 1: Improve Transit Services − Efficiently and effectively operate service sectors − Improve service quality and capacity for bus and rail systems − Maximize fleet capacity to meet service expansion − Improve, expand and add operating facilities − Implement innovative technologies − Improve transit security of bus and rail systems − Acquire and deliver cost effective materials, parts and supplies

Goal 2: Deliver quality capital projects on time and within budget − Design and build quality projects − Develop Integrated Project Tracking System − Streamline Project Delivery System − Work with contractors to provide a safe work site to minimize lost time accidents

Goal 3: Exercise fiscal responsibility − Manage the approved budget − Implement efficient and effective cost allocation plans − Implement an integrated performance monitoring measurement information system − Conduct monthly performance monitoring reviews to assess financial performance − Eliminate duplicate roles & responsibilities − Improve the procurement process

Goal 4: Provide leadership for the region’s mobility agenda − Provide quality planning, technical analysis and programming − Coordinate implementation of Multi-modal transportation programs with partner agencies − Identify, program, secure and maintain funding for projects, programs and services countywide

Goal 5: Develop an effective and efficient workforce − Enhance a safety conscious culture throughout METRO, its customers and business partners − Recruit and select employees to meet job requirements − Invest in employee development − Deliver consistent communication services to each METRO market segment − Streamline internal processes − Exercise consistent application of the collective bargaining agreement − Strengthen the labor management working relationship


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Values Safety Safety’s 1st for our customers, employees and business partners. Accidents and injuries are preventable.

Employees Employees are our most valuable resource and are to be treated with mutual respect and provided opportunities for professional development.

Fiscal Responsibility Individually and as a team, we are accountable for safeguarding and

wisely spending taxpayer dollars entrusted to the METRO.

Integrity We rely on the professional ethics and honesty of every METRO employee.

Innovation Creativity and innovative thinking are valued and new ideas are welcomed.

Customer Satisfaction We strive to exceed the expectations of our customers.

Teamwork We actively seek to blend our individual talents in order to be the best in the nation.


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HOW THE STRATEGIC PLAN IMPACTS METRO EMPLOYEES – ONGOING

VISION METRO . . . Leading the nation in safety,

mobility and customer satisfaction.

MISSION METRO is responsible for the continuous improvement of an efficient and effective

transportation system for Los Angeles County.

Goals

Objectives

Strategies

Actions

Key Performance Indicators

Service Delivery & Evaluation

Individual Performance

Represented Employees

Non-Represented Employees

Approved by CEO

Implementation,Accountability &

Execution

Developed byManagement,

Approved by CEO

Values

METRO Managers & Supervisors


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HOW THE STRATEGIC PLAN IMPACTS METRO CUSTOMERS – ONGOING VISION

METRO . . . Leading the nation in safety, mobility and customer satisfaction.

MISSION METRO is responsible for the continuous improvement of an efficient and effective

transportation system for Los Angeles County.

Goals

Objectives

Strategies

METRO Managers & Supervisors

• Better allocate & utilize resources • Increase communications with

stakeholders and community • Provide improved service quality • Improve customer satisfaction

Performance Monitoring: − Daily reviews of service quality − On-street service supervision − Implementation of systems improvements − Service surveys to benchmark improvements

Approved by CEO

Goal Attainment & Execution

Developed by Management, Approved by CEO

Values

Actions

Key Performance Indicators


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COMMUNICATION PLAN (MODEL) – ONGOING

Overall, this agency seeks to be recognized as a leader in the national transportation industry. The vision cannot be achieved without the continued commitment, energy and hard work of each and every Metro employee. It is critical that the Metro Team Leaders communicate with one voice at every level of the organization and across every transit mode.

This is the basis for developing an agency-wide Communication Plan that “promotes and fosters open communication.” This model enables each and every employee an opportunity to articulate and communicate the new strategic agency direction. It will strive to improve communication with customers, employees, business partners and/or stakeholders.

The success of the strategic plan can only be achieved through an agency-wide communication and implementation strategy. This communication plan involves every Metro employee and the Metro Communications Department. The Communications Department will develop

an agency-wide “brand” for the new strategic direction of the agency. The Communications Department will develop marketing and promotional materials to reinforce the vision, mission, core values, goals and new strategic direction of the agency. This offers every employee an opportunity to own the strategic plan as his or her own and to personally be committed to implement the strategic plan.

The Metro Operations Service Sectors’ various strategic plans (e.g., service, fleet, facilities, etc.) are to be integrated and aligned to support the agency-wide strategic plan. Metro’s Long-Range Transportation Plan has been aligned to include the short and long range Los Angeles County transportation program planning and project initiatives.

For your information, the diagram on the following page outlines the Leadership Model to cascade and communicate the strategic plan agency-wide.


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PRACTICING LEADERSHIP MODEL

Employees – First Point of Contact with Clients & Customers

Communicate Agency-wide Vision,

Mission & Values

Cascade to Middle Management & Frontline Supervisors

Linkage to Performance Based Compensation

Develop oversight & Monitoring and coordinate action plans to support goals & objectives

Goal Achievements Identification of every employee’s Individual roles & responsibilities Responsible for implementing goals

Performance Based Compensation Assessment of individual contributions and attainment towards supporting agency goals and objectives

Planning Oversight & Monitoring

Integrate Strategic Goals & Objectives into FY05 Budget & Performance

Management Process

Produce an integrated strategic plan for agency


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I-20 • Key Performance Indicators and the Agency Scorecard Description of Metro and Strategic Plan

KEY PERFORMANCE INDICATORS AND THE AGENCY SCORECARD

Like many of today’s leading businesses, Metro tracks its key performance indicators (KPIs) throughout the year to ensure services are provided at the proposed levels and within the approved budgets.

Metro has been using the CEO’s Scorecard to track its KPIs since FY04. This desktop data-mining tool has provided Metro management with timely performance data for a wide variety of agency-critical areas such as operator and mechanic wage expense, workers’ compensation claims, and bus accidents. By developing and relying on applications such as the CEO’s Scorecard, management gets the timely and accurate data needed to make sound decisions and quickly adapt to the dynamic trends emerging in the public transit industry.

During FY05, the CEO’s Scorecard coverage was expanded to include other KPIs such as:

• Compressed Natural Gas (CNG) Cost and Usage per Vehicle Hour,

• Lost Work Days (Paid),

• Non-Sector ATU Wage Expense per Vehicle Hour,

• Non-Sector AFSCME Wage Expense per Vehicle Hour,

• Passenger Boardings, and

• Fare Revenue per Boarding.

FY05 presented Metro with many serious

challenges. The dire state and federal economic conditions greatly impacted the Metro’s annual grants and subsidies. Moreover, sharply rising fuel prices, lower than expected fare revenues, increased public liability costs, and mounting workers’ compensation claim expenses all contributed to one of Metro’s most challenging fiscal years in recent memory. While management has done its best to keep the nation’s second-largest public transportation agency running smoothly, the challenges have been, and will continue to be, daunting.

Despite these fiscal hurdles, Metro continues to provide some of the best public transportation options in the country. Against a backdrop of hiring freezes and minimal raises, the typical Metro employee continues to work safer and smarter. FY05 workers’ compensation claims, bus accidents and lost workdays were down significantly from FY04 levels. Over 93% of all FY05 invoices were paid within 30 days, compared to 87% in FY04. Metro’s in-service, on-time performance continues to improve as we strive to provide the best public transit service in the country. The implementation of new technologies such as the Maintenance and Material Management System will help to improve our operations and better serve our customers. By implementing these systems and continuing to work harder and smarter, Metro is well poised to meet the unique challenges in FY06 and beyond.


FY06 Budget

Description of Metro and Strategic Plan Key Performance Indicators and the Agency Scorecard • I-21

KEY PERFORMANCE INDICATOR FY04 Actual FY05 Estimated* FY06 Target**

Fare Revenue $221,454,000 $265,200,000 $263,680,000

Operator Wage Expense per Vehicle Hour (WE/VH) $26.91 $27.48 $27.60

ATU WE/VH $10.94 $10.73 $11.55

AFSCME Transportation WE/VH $2.22 $2.00 $2.41

AFSCME Maintenance WE/VH $1.03 $0.93 $0.89

Non-Sector ATU WE/VH $2.80 $2.85 $2.76

Non-Sector AFSCME WE/VH $1.39 $1.30 $1.33

CNG Cost per Vehicle Hour $4.45 $4.79 $5.55

New Weekly WC Claims (per 200K EH) 18.79 16.86 16.87

Lost Work Days 9,272 5,011 5,011

Boardings 393,598,140 438,800,000 441,378,858

Fare Revenue per Boarding $0.57 $0.60 $0.60

Bus Accidents per 100,000 Vehicle Hours 49 48 49

On-Time Bill-Paying 87% 92% 90%

* FY05 full-year actuals not available as of publication date.** FY06 Targets may be revised due to changes in budgets and resource allocations.


FY06 Budget

I-22 • Key Performance Indicators and the Agency Scorecard Description of Metro and Strategic Plan


II. Budget Highlights


FY06 Budget

Budget Highlights About the Budget • II-1

ABOUT THE BUDGET

Preface

The Governmental Accounting Standards Board has issued Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments. Statement 34 requires that financial information be consolidated into either governmental activities or business-type activities. This budget document incorporates that principle and is thus consistent with the Agency’s Comprehensive Annual

Financial Reports. Examples of business-type activities at Metro include transit operating and capital costs, infrastructure construction, and debt activities. These activities constitute the Enterprise Fund. Examples of governmental activities are subsidies Metro provides to other agencies, the regional planning and programming of funds, and functions of the Metro Board of Directors. These activities are reported in the Governmental Fund, which includes both the Special Revenue Fund and the General Fund.

Balancing the Budget

Metro began the process of balancing the FY06 budget immediately after adoption of the FY05 budget. The first step in the process was to incorporate the assumptions in Short Range Transportation Plan (SRTP) in the Ten-Year Forecast. The Ten-Year Forecast included revenue and expense forecasts for all funds and major programs. The Ten-Year Forecast identified potential situations where we might experience deficits.

Once we identified potential shortfalls, management began the process of

reprioritizing programs, and revising the assumptions in the SRTP. We also began a search for additional recurring and one-time revenue. As part of our continuous review of budget variances, we identified additional assumptions that needed to be modified, such as fuel prices and fare revenues.

Management incorporated information from the Ten-Year Forecast and budget variances into FY06 expense targets for each fund, which would balance anticipated revenue and expenses. Management then allocated the target to each department and held the department manager responsible for meeting the target. Simultaneously, management aggressively pursued additional local, state, and federal revenue and grants.

Revenue and expenses shown in this budget are a result of this process.

Financial Trends

Metro’s annual budget is consistent with the agency’s long-term vision as described in its two principal planning documents:

• Short Range Transportation Plan for Los Angeles County (SRTP)

The SRTP focuses on the phasing of transportation improvements through 2009. It relies on performance-based modeling to identify the best solution for each mobility challenge. It can be found at www.metro.net/projects_plans/shortrange/srtp.htm.

http://www.metro.net/projects_plan/overview.htm


FY06 Budget

II-2 • About the Budget Budget Highlights

• Long Range Transportation Plan for Los Angeles County (LRTP)

The LRTP looks ahead at transportation needs over the next twenty-five years, from 2001 through 2025. It is the blueprint for implementing future transportation improvements for Los Angeles County. It can be found at www.metro.net/projects_plans/longrange/lrtp.htm..

Changes in Staffing Levels

The FY06 budget funds 8,918 full-time equivalent positions (FTEs) which is a reduction of 35 from the previous year. This was the net result of Metro’s austere cost-containment program which eliminated 133 positions. This offset the 98 positions added for court-mandated Consent Decree service and implementation of the Orange Line. The positions eliminated were mostly general and administrative in nature. This reflects Metro’s commitment to meeting its mission with a minimum of support costs through constant productivity improvements.

Changes in Fund Equity Balances

Business-Type Activities

There will be no net impact on resources available for appropriation in the enterprise fund. This is to be expected as this fund receives federal and state grants and subsidies from the governmental funds to finance its operating loss and capital and debt commitments. It also relies to some extent on borrowing ($176.3 million in FY06). The Enterprise fund is relying on $77 million in one-time revenues in FY06. This is evidence of the continuing scarcity of resources.

Governmental Activities

In FY06 the Special Revenue fund is budgeted to spend $111.4 million from fund balance. This is mainly due to budgeting $88.6 million of Proposition C sales tax for highway, park and ride, and commuter rail uses. $17.4 million of STA sales tax, accumulated in prior years,will be used for bus and rail capital. The General fund is expected to draw $42.0 million from the fund balance for bus activities as approved by the Board for Consent Decree requirements.

Local Transportation Subsidies

These comprise the transfers of sales tax from the Special Revenue Fund to the Enterprise Fund as follows:

Proposition A $357.0 Proposition C 295.5 TDA 214.2 STA 50.9

Total $917.6

All transfers are made in accordance with their enabling legislation. When received into the Enterprise Fund, they are reported as local grants.

General and Administrative Expenses/Expenditures

“General and Administrative” is defined as follows:

Enterprise fund: All activities associated with the general administration of a transit agency including transit service development, injuries and damages, safety, personnel administration, legal services, insurance, data processing, finance and accounting, purchasing and

http://www.metro.net/projects_plans/longrange/LRTP.HTM

http://www.metro.net/projects_plans/longrange/LRTP.HTM


FY06 Budget

Budget Highlights About the Budget • II-3

stores, engineering, real estate management, office management and services, customer services, promotion, market research and planning (American Public Transportation Association definition).

Governmental funds: Expenses incurred in the general direction of an enterprise or a business unit as a whole as contrasted with an expense or cost of an output or product for a more specific function.

As part of its cost containment efforts, Metro has sought to minimize general and administrative outlays. The charts of expenses/expenditures reflect the progress made on a relative basis between FY04 and FY05. Looking forward to FY06, this positive trend will reverse slightly in both the Enterprise and Governmental funds. The Enterprise fund will see the impact of

increased insurance and workers’ compensation costs as well as unusually high litigation costs for major capital project close-outs (classified as general and administrative). The Governmental funds will have slight increases in building rent allocation, and wages and benefits (classified as general and administrative) in conjunction with lower subsidy expenditures (classified as operating) which will adversely affect the ratio.

The chart of full-time equivalent positions shows the steady progress made in reducing general and administrative positions on both a relative and absolute basis thanks to productivity enhancements. The FY06 budget continues this trend.

General & Administrative Portion of Full Time Equivalent Positions

7,440

1,604

7,487

1,467

7,533

1,385

4,000

5,000

6,000

7,000

8,000

9,000

10,000

FY04 Actual

FY 05 Amended

FY06 Budget

All FundsGeneral & AdministrativeOperating


FY06 Budget

II-4 • About the Budget Budget Highlights

General & Administrative Portion of Expense/Expenditure

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

(am

oun

ts in

thou

san

ds)

FY04Actual

FY05Amended

FY06Budget

Enterprise Fund (Operating & Capital)

General & AdministrativeOperating

77.4%

22.6%

83.1%

16.9%

82.1%

17.9%

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

(am

oun

ts in

thou

san

ds)

FY04Actual

FY05Amended

FY06Budget

Governmental Fund (General and Special Revenue funds)

General & AdministrativeOperating

7.3%

92.7%

6.3%

93.7%92.5%

7.6%


FY06 Budget

Budget Highlights FY06 Budget Highlights and Major Budget Assumptions • II-5

FY06 BUDGET HIGHLIGHTS AND MAJOR BUDGET ASSUMPTIONS

Metro Bus and Rail

FY06 Target Service Levels

MODE REVENUE SERVICE HOURS (000)

CHANGE FROM FY05

Metro Bus Metro Operated 7,053 0.0%

Orange Line 64 n/a

Purchased Transportation 527 2.9%

Total Metro Bus 7,644 1.1%

Metro Rail Blue Line 202 -4.7%

Green Line 84 -4.5%

Gold Line 70 -21.3%

Red Line 263 -2.6%

Total Metro Rail 619 -6.1%

Total 8,263 0.4%

• Increase bus service by 77,000 revenue service hours.

• Begin Orange Line fixed guideway service in the San Fernando Valley in September 2005.

• Put into service the first 60-foot articulated buses in LA County.

• Provide for expected higher costs of fuel and propulsion power, which are expected to increase at a much greater rate than the expected increase in the CPI.

• Implement four new Metro Rapid bus lines:

♦ Santa Monica—from Santa Monica to downtown LA via Santa Monica Blvd.,

♦ Western—from the Crenshaw Metro Green Line Station to the

Hollywood/Western Metro Red Line Station,

♦ Long Beach—from the Artesia Blue Line Station to downtown LA, and

♦ Reseda—from the Sylmar\San Fernando Metrolink Station to the intersection of Reseda and Ventura Blvds.

• Improve the bus and rail vehicle preventive maintenance programs.

• Increase Homeland Security efforts through a capital grant and increased fare checkers, security guard training, and additional security equipment.

• Maintain fares at current levels.

Capital Program

• Capital projects are funded in agency-wide priority using the following


FY06 Budget

II-6 • FY06 Budget Highlights and Major Budget Assumptions Budget Highlights

criteria developed by management: safety, customer improvements, previously committed, and mandated.

• Although all capital projects receive an annual appropriation, capital projects are controlled by the life-of-project budget which must be approved by the Board.

• Revenues in the capital program are a combination of grant and local funds.

• The Gold Line Eastside Extension will continue a multi-year major construction phase.

• Construction of the Orange Line bus rapid transitway will be substantially completed in FY06.

• Development of Mid-City/Exposition Light Rail Transit will continue in FY06.

• Installation of in-vehicle equipment and centralized data collection equipment under the Universal Fare System project will be completed.

• The design and acquisition of equipment for a regional clearinghouse service center will commence. This clearinghouse will process all fare transactions and properly distribute the revenues to Metro and our municipal partners.

• Construction of a new transportation building and facilities will begin in FY06.

• Construction of light rail operating Division 11 improvements will begin in FY06.

Other Budget Highlights and Assumptions

• Sales tax revenues are forecast to be $1,594 million in total.

• Salaries will increase according to union contracts for represented employees and at 2.5% for non-represented employees.

Summary of Funding by Source

(Dollars in millions)

Sales Tax (1) $1,414.9 64.3% $1,559.0 70.2% $1,514.0 66.8% $1,738.5 57.7% $1,714.2 60.0%

Federal, State, & Local Grants 438.4 19.9% 345.0 15.5% 377.2 16.6% 635.3 21.1% 618.6 21.6%

Passenger Fares & Advertising 255.5 11.6% 261.5 11.8% 233.4 10.3% 276.4 9.2% 276.7 9.7%

Net Proceeds from Financing 33.0 1.5% - 0.0% 82.4 3.6% 311.5 10.3% 179.3 6.3%

Other (2) 59.0 2.7% 56.1 2.5% 61.0 2.7% 50.5 1.7% 70.5 2.5%

Total Funding Sources $2,200.8 100.0% $2,221.6 100.0% $2,268.0 100.0% $3,012.2 100.0% $2,859.3 100.0%

Summary of Expenses/Expenditures by Program

(Dollars in millions)

Countywide Bus Metro Bus

Operating (3) $733.4 33.3% $763.0 34.3% $725.5 32.0% $791.8 26.3% $836.7 29.3%Capital 181.3 8.2% 76.9 3.5% 130.2 5.7% 244.1 8.1% 157.2 5.5%Bus Facility Construction 3.3 0.1% 1.9 0.1% 1.3 0.1% 19.8 0.7% 1.0 0.0%Orange Line 8.3 0.4% 32.2 1.4% 76.0 3.4% 173.8 5.8% 70.0 2.4%

Metro Bus Subtotal 926.3 42.1% 874.0 39.3% 933.0 41.1% 1,229.5 40.8% 1,064.9 37.2%

Municipal Operator andParatransit Programs (4) 210.9 9.6% 253.7 11.4% 240.9 10.6% 304.4 10.1% 230.1 8.0%

Countywide Bus Subtotal 1,137.2 51.7% 1,127.7 50.8% 1,173.9 51.8% 1,533.9 50.9% 1,295.0 45.3%

Countywide RailMetro Rail

Operating (3) 143.4 6.5% 150.4 6.8% 179.4 7.9% 216.3 7.2% 225.1 7.9%

Capital 15.7 0.7% 19.8 0.9% 15.1 0.7% 42.3 1.4% 44.6 1.6%Rail Construction 122.2 5.6% 64.4 2.9% 42.7 1.9% 53.2 1.8% 70.3 2.5%LRT-Eastside/Expo 25.1 1.1% 41.5 1.9% 43.2 1.9% 216.9 7.2% 273.0 9.5%

Metro Rail Subtotal 306.4 13.9% 276.1 12.4% 280.4 12.4% 528.7 17.6% 613.0 21.4%

Metrolink 44.7 2.0% 38.8 1.7% 39.6 1.7% 54.9 1.8% 57.9 2.0%Countywide Rail Subtotal 351.1 16.0% 314.9 14.2% 320.0 14.1% 583.6 19.4% 670.9 23.5%

Sales tax return to localjurisdictions 228.5 10.4% 239.9 10.8% 249.6 11.0% 258.5 8.6% 269.1 9.4%

Streets and Highways 125.0 5.7% 146.8 6.6% 146.8 6.5% 256.4 8.5% 249.9 8.7%

Debt Service (5) 302.0 13.7% 308.8 13.9% 312.3 13.8% 305.6 10.1% 309.7 10.8%

Other Governmental 57.0 2.6% 83.5 3.8% 65.4 2.9% 74.2 2.5% 64.7 2.3%

Total Expenditures $2,200.8 100.0% $2,221.6 100.0% $2,268.0 100.0% $3,012.2 100.0% $2,859.3 100.0%

(1) Sales tax revenues include the use of carryover balances.(2) Primarily investment income and/or proceeds on lease/leaseback to service.(3) Details shown on page IV-4.(4) ASI Paratransit: federal amounts included in prior years have been excluded in FY06 because ASI will receive federal funds directly.(5) Includes principal liability payments and Benefit Assessment District debt payments, but excludes debt refunding and defeased lease.

Proprietary fund includes principal payments of $19.3 million in FY02, $19.8 million in FY03, $16.3 million in FY04, $12.0 million in FY05 and $12.0 million for FY06.


FY06 Budget

FY06 Budget

Los Angeles County Metropolitan Transportation AuthorityFY06 Budget

FY05 AmendedFY04 ActualFY03 Actual

FY05 AmendedFY04 ActualFY03 ActualFY02 Actual

FY02 Actual


FY06 Budget


FY06 Funding by Source

Federal, State, &

Local Grants22%

Passenger Fares &

Advertising10%

Net Proceeds from

Financing6%

Other2%

Sales Tax60%

FY06 Expenditures by Program

Streets & Highways

9%

Metrolink2%

Other2%

Metro Bus38%

Metro Rail21%

Debt Service11%

Sales Tax Local Return

9%

Municipal Operator Programs

8%


FY06 Budget


Summary of Funding by Source ($)

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

FY02 Actuals FY03 Actuals FY04 Actuals FY05 Amended FY06 Budget

Mill

ion

s

Sales Tax Federal, State, & Local Grants Passenger Fares & Advertising Net Proceeds from Financing Other

Summary of Funding by Source (%)

0%

20%

40%

60%

80%

100%

120%

FY02 Actuals FY03 Actuals FY04 Actual FY05 Amended FY06 Budget

Sales Tax Federal, State, & Local Grants Passenger Fares & Advertising Net Proceeds from Financing Other

Statement of Revenues and ExpensesFor the Years Ending June 30, 2004, 2005, and 2006

(Amounts in millions)

Enterprise Fund - SummaryFY04

ActualFY05

AmendedFY06

Budget1 Operating revenues:2 Passenger fares 221.5$ 265.2$ 263.7$ 3 Route subsidies 0.6 0.5 0.5 4 Auxiliary transportation 11.9 13.8 15.7 5 Total operating revenues 234.0 279.4 279.9 67 Operating expenses:8 Operating 673.7 764.9 818.0 9 General & administrative 231.3 243.2 243.8

10 Operating expenses, excluding depreciation: 905.0 1,008.1 1,061.8 1112 Operating loss (671.0) (728.7) (782.0) 1314 Operating subsidies and grants (other expenses):15 Local operating grants 548.7 508.0 579.6 16 State operating grants 0.5 0.7 0.1 17 Federal operating grants 115.2 217.9 193.6 18 Interest revenues 3.5 2.2 3.8 19 Net appreciation (decline) in fair value of investments (5.9) - - 20 Interest expense (6.9) (2.8) (2.6) 21 Other revenue 2.1 2.7 7.5 22 Total operating subsidies and grants (other expenses) 657.3 728.7 782.0 2324 Gain (loss) before debt and capital items (13.7) - - 2526 Debt service & capital grants / contributions: *27 Local 28 Capital 90.5 107.3 109.5 29 Debt service 246.6 261.3 281.8 30 Debt service other revenues 4.0 4.0 2.5 31 Proceeds from financing 82.4 306.9 176.3 32 State - capital 11.4 33.9 68.3 33 Federal - capital 144.3 315.0 260.2 34 Total debt service & capital grants / contributions 579.3 1,028.5 898.5 3536 Capital program :37 Operating capital 169.8 314.8 202.9 38 Major construction 158.9 448.4 411.3 39 Total capital program 328.7 763.2 614.2 4041 Debt service expenses: *42 Interest expense 161.9 158.5 166.0 43 Principal payments 84.7 102.8 115.8 44 Services 4.0 4.0 2.5 45 Total debt service expenses 250.6 265.3 284.3 4647 Net surplus (deficit) (13.7)$ -$ -$

* Excludes defeased leases and includes non-cash itemsNote: Totals may not add due to rounding.


FY06 BudgetLos Angeles County Metropolitan Transportation Authority

Statement of Revenues, Expenditures and Changes in Fund BalancesFor the Years Ending June 30, 2004, 2005 and 2006


Governmental Funds - Summary FY04 Actual

FY05 Amended

FY06 Budget

1 Revenue:

2 Sales tax 1,478.4$ 1,527.2$ 1,594.3$

3 Intergovernmental grants 109.6 134.7 99.9

4 Investment income 8.0 17.0 15.3

5 Net decline in fair value of investments (2.5) - -

6 Lease and rental 11.0 10.5 10.7

7 Proceeds on lease/leaseback to service 8.1 - -

8 Licenses and fines 7.8 7.5 7.5

9 Other 17.2 15.7 7.0

10 Total Revenues 1,637.6 1,712.6 1,734.6

11

12 Expenditures:

13 Subsidies 1,566.6 1,763.2 1,761.2

14 Services 47.0 73.1 65.0

15 Debt and interest expenditures

16 Interest and fiscal charges 0.6 0.7 0.7

17 Bond principal & commercial paper retirement 0.8 1.5 1.6

18 General and administrative 47.1 56.6 59.5

19 Total expenditures 1,662.1 1,895.2 1,888.0

20

21 Net change in fund balances (24.4) (182.6) (153.4)

22

23 Fund balances - beginning of year 770.5 746.1 563.5

24

25 Fund balances - end of year 746.1$ 563.6$ 410.1$

Note: Totals may not add due to rounding.




FY06 Budget

II-12 • Financial Structure Compared to Organizational Structure Budget Highlights

FINANCIAL STRUCTURE COMPARED TO ORGANIZATIONAL STRUCTURE The table below shows how cost by fund discussed in the Financial Details relates to cost by Strategic Business Unit discussed in the Strategic Business Units section. Total

cost in the two sections match, since they represent two ways of sorting the same detail.

(Amounts in millions) Enterprise Enterprise Enterprise SpecialFund Fund Fund Revenue Prop A & C General Agency Metro

Strategic Business Unit Operating * Capital Debt Fund** Admin*** Fund ** Fund TotalTransit Operations 949.3$ 237.2$ 10.5$ 39.5$ 5.5$ 3.1$ -$ 1,245.1$

Countywide Planning & Development - 1.6 - 759.1 10.6 0.9 0.3 772.5

Construction Project Management 0.1 340.2 - 0.1 0.3 - - 340.7

Communications 18.6 0.7 - 1.1 5.0 3.3 - 28.7

Support Services 74.8 15.1 273.8 8.6 10.3 2.9 22.5 408.0

Chief of Staff 19.6 5.7 - 3.3 7.3 4.2 - 40.1

Board of Directors 2.0 13.7 - 0.2 8.3 - - 24.2 Metro Total 1,064.4$ 614.2$ 284.3$ 811.9$ 47.3$ 14.4$ 22.7$ 2,859.3$

* Includes $2.6 million of interest in the Other Expenses section of the financial statements.** Excludes interfund subsidies shown in the financial statements (SRF: $968.4 million; GF: $49.8 million).*** Included in Special Revenue Fund financial statement.

Business-Type Governmental-Type

III. Customer Service


FY06 Budget

Customer Service Metro Bus and Rail Service • III-1

CUSTOMER SERVICES Metro provides a wide range of customer services to increase mobility and quality of life throughout Los Angeles County. These services include bus and rail operations, ridesharing services, freeway services, and transit information.

METRO BUS AND RAIL SERVICE Metro operates three modes of transit service: bus (directly operated and contracted), light rail, and heavy rail. Boardings average over 1.3 million per weekday. Transit services and supporting capital expenditures make up over two-thirds of the FY06 budget.

Metro Bus

Metro is the second largest bus operator in the United States. Metro bus service averages over 1.1 million boardings per weekday. Collectively, the buses travel 250,000 miles on 185 bus routes serving 18,500 bus stops each weekday.

The FY06 budget includes funds for the completion of the high capacity 45-foot bus procurement and for 178 new 60-foot high capacity articulated buses. Metro currently provides about 173 buses to contractors operating Metro service and will add new vehicles for the Metro Green Line shuttle.

Metro is the largest operator of alternative fueled buses. Currently 1,988 buses, or 80% of the 2,400 buses in Metro’s fleet, are powered by engines using clean-burning compressed natural gas (CNG).

Service Sectors

Metro Bus is organized into five geographic areas known as Sectors. The Sectors are managed by a General Manager with planning oversight from an independent Governance Council.

The Governance Councils provide guidance and recommendations to sector general managers at the community level on improvements to bus service delivery and quality.

Sector Goals and Objectives

With about three full years of operational experience, Service Sectors continue to improve bus service quality and delivery to meet the goals to improve service to its customers by providing local communities with input into its operations. The key principles are to localize control, maintain a single point of contact for service issues, balance responsibility with authority, streamline the decision process and support agency policies, plans and safety initiatives. The following areas of success were achieved by the Service Sectors:

• Locally-based sector planning and scheduling has implemented efficiencies and is more responsive to both customers and bus operators. Service Sectors have improved local bus service, increased accessibility and responsiveness, increased coordination, and focused customer service.

• The Sector Governance Councils, charged with overseeing the planning and implementation of service within their area, have been effective at improving Metro’s connection and accountability to customers and local communities.


FY06 Budget

III-2 • Metro Bus and Rail Service Customer Service

• Overall, with the implementation of technological improvements, on-time

performance and accidents performance indicators are improving.


FY06 Budget



FY06 Bus Operating Statistics (as budgeted)

ORANGE LINE

SAN FERNANDO

VALLEY

SAN GABRIEL VALLEY

GATEWAY CITIES

BOARDINGS (000) 2,246 56,761 61,586 77,818 REVENUE SERVICE HOURS (000) 64 1,263 1,279 1,346 REVENUE SERVICE MILES (000) 975 17,444 15,959 15,024 HUB MILES (000) 1,160 21,553 18,878 18,737 BOARDINGS PER REVENUE SERVICE HOUR 35.3 44.9 48.1 57.8 PASSENGER MILES (000) 15,725 212,632 238,337 301,156

COST PER REVENUE SERVICE HOUR $154.88 $94.01 $90.32 $89.17COST PER PASSENGER MILE $0.63 $0.56 $0.48 $0.40COST PER BOARDING $4.39 $2.09 $1.88 $1.54SUBSIDY PER BOARDING $3.80 $1.44 $1.24 $0.91SUBSIDY PER PASSENGER MILE $0.54 $0.39 $0.32 $0.23FARE RECOVERY RATIO 13.6% 28.6% 31.8% 38.4%FARE REVENUE PER BOARDING $0.60 $0.60 $0.60 $0.60

* Systemwide statistics include bus operating expenses from support activities not assigned directly to sector management, such as in Central Maintenance,Central Control & Instruction, Facilities, and Adminstrative Support.

III-4 • Metro Bus and Rail Service Customer Services


Boardings by Sectors

ORANGE LINE1%

SAN FERNANDO

VALLEY15%

SAN GABRIELVALLEY

17%

GATEWAY21%

SOUTHBAY20%

WESTSIDE/CENTRAL

23%

CONTRACT SERVICES

3%

Revenue Service Hours

ORANGE LINE1%

SAN FERNANDO

VALLEY17%

SAN GABRIELVALLEY

17%

GATEWAY18%

SOUTHBAY19%

CONTRACT SERVICES

7%

WESTSIDE/CENTRAL

21%

SOUTH BAYWESTSIDE/ CENTRAL

CONTRACT SERVICES SYSTEMWIDE *

BOARDINGS (000) 74,811 85,175 11,500 369,897 REVENUE SERVICE HOURS (000) 1,452 1,713 527 7,644 REVENUE SERVICE MILES (000) 18,097 20,103 7,366 94,967 HUB MILES (000) 22,312 24,614 8,952 116,207 BOARDINGS PER REVENUE SERVICE HOUR 51.5 49.7 21.8 48.4 PASSENGER MILES (000) 289,517 329,629 55,599 1,442,594

COST PER REVENUE SERVICE HOUR $93.20 $95.88 $65.54 $109.09COST PER PASSENGER MILE $0.47 $0.50 $0.62 $0.58COST PER BOARDING $1.81 $1.93 $3.01 $2.25SUBSIDY PER BOARDING $1.17 $1.28 $2.32 $1.61SUBSIDY PER PASSENGER MILE $0.30 $0.33 $0.48 $0.41FARE RECOVERY RATIO 33.0% 30.7% 19.9% 26.5%FARE REVENUE PER BOARDING $0.60 $0.60 $0.60 $0.60

Customer Services Metro Bus and Rail Service • III-5


Cost per Revenue Service Hour

$0.00$20.00$40.00$60.00$80.00

$100.00$120.00$140.00$160.00$180.00

ORANGE LINE SAN FERNANDO

VALLEY

SAN GABRIELVALLEY

GATEWAY SOUTHBAY

WESTSIDE/CENTRAL

CONTRACT SERVICES

sectorsystemwide

Subsidy per Boarding

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

ORANGE LINE SAN FERNANDO

VALLEY

SAN GABRIELVALLEY

GATEWAY SOUTHBAY

WESTSIDE/CENTRAL

CONTRACT SERVICES

sectorsystemwide


FY06 Budget


Bus Performance Indicators FY03

Actual FY04

Actual FY05

Estimated FY06

Target

Customer Indicators

In-Service On-Time Performance

69.23% 65.43% 69.34% 70.00%

Financial Indicators

Bus cost per service hour $103.23 $109.40 $104.25 $109.09

Farebox Recovery 28.3% 25.7% 28.0% 26.5%


$1.44 $1.60 $1.46 $1.61

Internal Process Indicators

Mean miles between chargeable mechanical failures

6,883 6,790 7,179 7,500

Safety Indicators

Vehicle accidents per 100,000 miles 3.86 3.65 3.40 3.25

Metro Rapid

Metro Rapid provides faster regional bus travel. The key features of Metro Rapid that make it faster and easier to use include simple route layout, frequent service, greater distance between stops, low-floor buses to facilitate boarding and alighting, color-coded buses and stops, and traffic signal priority at intersections.

Launched in 2000, the Metro Rapid Demonstration Program consisted of two lines - one along Ventura Boulevard in the San Fernando Valley and the other along the Wilshire/Whittier Transit Corridor. Metro Rapid reduced travel time by about 25% while increasing ridership nearly 35%, with one-third of those riders using Metro Rapid representing new riders to the system.

During FY03, the Metro Board of Directors approved the accelerated implementation of the Metro Rapid

Expansion Program. In approving the Metro Rapid Expansion Program, additional corridors were identified and prioritized into five implementation phases. By the end of FY06, 19 Metro Rapid lines will be in service. New Metro Rapid lines to be implemented in FY06 include:

• Santa Monica Metro Rapid Line 704. To be implemented December 2005. The Santa Monica Metro Rapid will operate east from the City of Santa Monica via Santa Monica Boulevard, passing through the community of West Los Angeles, and the cities of Beverly Hills and West Hollywood. In the community of Silver Lake, the line turns southeast on Sunset Boulevard/Cesar Chavez, and south on Hill Street, terminating at Venice Boulevard. This line will also connect with the Wilshire-Whittier, Vernon-La Cienega, Fairfax-Hollywood, Long Beach, Hawthorne, Broadway, and Beverly Metro Rapid lines, as well as


FY06 Budget


the Metro Red Line at Vermont Avenue and Hill & 5th.

• Western Metro Rapid, Line 757. To be implemented December 2005. The Western Metro Rapid will operate from the Crenshaw Metro Green Line Station north on Crenshaw Boulevard, east on Imperial Highway, and north on Western Avenue to its northern terminus at the Hollywood/Western Metro Red Line Station. The Western Metro Rapid will serve the cities of Hawthorne, Inglewood, Los Angeles County and the City of Los Angeles. This line will also connect with the Florence, Vernon-La Cienega, Hawthorne, Wilshire-Whittier, Beverly and Santa Monica Metro Rapid lines, as well as the Metro Red Line at the Wilshire-Western Station.

• Long Beach Metro Rapid, Line 760. To be implemented June 2006. The Long Beach Metro Rapid will operate north from the Artesia Blue Line Station, continuing east on Artesia Boulevard to Long Beach Boulevard, proceeding north on Long Beach Boulevard, traversing the cities of Long Beach, Compton, Lynwood, South Gate, and the County of Los Angeles community of Walnut Park. At the City of

Huntington Park, the line proceeds north on Pacific Avenue, then turns north on Santa Fe Avenue through the City of Vernon, traversing Downtown Los Angeles on 7th Street, Broadway, and terminating in the City of Los Angeles at the Gateway Transit Plaza. This line will also connect with the Florence, Vernon-La Cienega, Broadway, Hawthorne, Santa Monica, and Wilshire-Whittier Metro Rapid lines as well as the Metro Green Line at the Long Beach Station and Metro Red Line at 5th and Broadway.

• Reseda Metro Rapid, Line 741. To be implemented June 2006. The Reseda Metro Rapid will operate from the Sylmar-San Fernando Metrolink Station located in the City of San Fernando, continuing south on Brand Boulevard, Sepulveda Boulevard, and west on Nordoff Street, serving the communities of North Hills, Northridge, Cal State University at Northridge, and then proceeding south on Reseda Boulevard through the community of Reseda, crossing the Orange Line, and continuing south to Ventura Boulevard, connecting with the Ventura Boulevard Metro Rapid Line.


FY06 Budget


Maps of Metro Rapid Lines that will be implemented in FY06


FY06 Budget


Metro Rail

In FY06, Metro Rail will provide 356,565 revenue vehicle hours for light rail and 262,574 hours for heavy rail. The budget includes resources to support this level of service, with some adjustments to train lengths, hours of service, and/or headways during morning weekend service periods. This budget also includes resources for Metro Rail to support the Orange Line with communication, facilities maintenance and custodial services.

In addition to the operations and maintenance of all rail lines, Metro Rail is responsible for all Rail related capital projects. During FY06, Metro Rail will complete the following major capital projects:

• Light Rail Division 11 – Phase 1

• Light Rail Division 22 – Blow Down Pit

• Light Rail SCADA Replacement

• Light Rail Division 21 Storage Track Project

• Four Traction Power Substations along the Metro Gold Line

The Light Rail Vehicle Procurement program is concluding the design phase and will be closely monitored during the construction period. The prototype of these light rail vehicles is scheduled for delivery in June 2005 with an additional 20 vehicles during FY06. Twelve Blue Line grade crossings will be retrofitted with safety gates in cooperation with the Union Pacific Railroad to enhance protection to motorists and trains.

Metro Rail will continue its effort to maintain and improve rail vehicles and station cleanliness, including the goal to reduce vandalism. This effort will be supported with law enforcement resources, incorporating new strategies to proactively address these as well as safety related issues system-wide.

In addition, Metro Rail will work with the Los Angeles County Sheriff’s Department to address Homeland Security issues on trains, stations and along the main lines. The Fare Checker program begun in FY04 on the Red and Gold Lines was expanded in FY05 to include the Green and Blue Lines. Fare checkers not only provide improved fare compliance, but also are an added security presence on the rail system. Metro now has over 100 fare checkers system-wide.


FY06 Budget


Rail Performance Indicators FY03

Actual FY04

Actual FY05

Estimated FY06

Target

Customer Indicators

Light Rail On-Time Performance 97.84% 98.77% 98.54% 99.00%

Heavy Rail On-Time Performance 99.15% 99.04% 98.59% 99.20%

Complaints per 100,000 boardings

Light Rail 1.29 1.43 1.23 1.00

Heavy Rail 1.20 1.17 1.03 1.00

Financial Indicators Light Rail cost per RVSH $300.25 $333.71 $365.48 $412.53

Heavy Rail cost per RVSH $244.39 $277.70 $274.45 $297.18

Farebox Recovery

Light Rail 21.0% 16.5% 15.1% 14.7%

Heavy Rail 23.6% 24.9% 30.7% 27.0%


Light Rail $2.13 $2.83 $2.83 $3.47

Heavy Rail $1.51 $1.66 $1.52 $1.61

Internal Process Indicators

Mean Miles Between Mechanical Failures 7,025 11,356 13,407 15,000

Safety Indicators Rail accidents per 100,000 revenue train miles

Light Rail 0.51 0.66 0.37 0.40

Heavy Rail 0.07 0.00 0.25 0.14


FY06 Budget

Customer Service Transportation Services • III-11

TRANSPORTATION SERVICES

Metro Freeway Service Patrol

Metro, in partnership with the California Department of Transportation (CALTRANS) and the California Highway Patrol (CHP), manages the largest fleet of tow and service trucks in the country. This service is known as the Los Angeles County Metro Freeway Service Patrol (FSP). Private tow companies operating a fleet of almost 150 tow vehicles are contracted to patrol over 400 miles of freeways during morning and afternoon commute hours, and during midday and weekends on heavily congested freeways. The goal is to quickly repair or remove disabled vehicles to relieve freeway congestion. The program is funded through local Proposition C 25% sales tax and state highway funds.

Over 70% of motorists needing assistance wait less than five minutes. Tow truck operators change flat tires, fill radiators, tape leaky hoses, and provide jump-starts and gasoline or, when necessary, tow the vehicle to a safe location off the freeway.

The success of the Metro Freeway Service Patrol and the increased congestion on heavily traveled truck routes has prompted Metro to investigate using “Big Rig” tow trucks to assist disabled oversized vehicles and trailer trucks on the I-710 freeway. This demonstration will begin in FY06 and continue for two years.

Service Authority for Freeway Emergencies

Service Authority for Freeway Emergencies (SAFE) is responsible for providing motorist aid services throughout

the County. In the past, SAFE’s primary service has been the maintenance and operation of the County’s system of approximately 4,500 call boxes. These call boxes provide call-answering services for people with vehicle problems on busy roads. In FY05, SAFE completed the physical accessibility improvements to the call box sites and developed a new Strategic Plan that expands and defines the role of SAFE as a motorist aid authority for the County.

In FY06, SAFE proposes to implement some of the recommendations presented in the Strategic Plan. These include the introduction and operation of the Mobile Call Box service, continued funding of the Metro FSP Big Rig Demonstration project, funding of Metro FSP service expansion, transition of the call box system operations from analog to digital wireless, working with Caltrans to install freeway exit sign numbers, and evaluating and managing various other motorist aid related projects.

Paratransit Services

Access Services, Inc. (ASI) manages the Americans with Disabilities Act (ADA) paratransit service. The purpose of the paratransit service program is to improve the quality and effectiveness of transportation services to the elderly and to persons with disabilities through coordination of public transportation with social service agencies and other charitable organizations, and to provide services to persons with disabilities in accordance with the ADA.


FY06 Budget

III-12 • Transportation Services Customer Service

Paratransit ridership in Los Angeles County is projected to increase by an average of 7% for the next five years.

High Occupancy Vehicle Lanes

There are 435 miles of High Occupancy Vehicle (HOV) lanes in operation in Los Angeles County. HOV lanes reduce congestion by using the capacity of the freeway system more efficiently. Caltrans estimates that an average of approximately 702,000 persons use HOV lanes daily in Los Angeles County.

Rideshare Program

Over the past years, the five county transportation commissions (CTC’s) which fund regional and local rideshare services in the Los Angeles area have been reviewing service delivery options to optimize rideshare program performance. As part of this review, the CTC’s conducted studies which recommended that rideshare services should be transferred from the Southern California Association of Governments to the CTC’s to enhance program effectiveness. Consequently, SCAG transferred rideshare services to the CTC’s at the end of FY03. The transfer brought about the establishment of Metro Commute Services, a one-stop shop for commute transportation services in Los Angeles County. Metro Commute Services provides a host of effective rideshare services and products to employers and their employees, including incentives and rebates, ridematching via telephone and internet, workshops, consultation, and transit pass programs.

1-800-COMMUTE

Through 1-800-COMMUTE, a statewide toll-free number, callers can access Metro information for personal transit assistance seven days a week. Callers are given route, schedule, and fare information for all public transportation providers serving the County. Rideshare assistance is also available.

Reduced Fares Program

The Reduced Fare Program enables eligible customers to ride the Metro System at a significantly reduced price with current monthly fare media affixed to a valid ID card. Personalized identification cards are provided to eligible full time college/vocational students, seniors and disabled customers. Students in grades K-12 participate in this program by using a Photo-less Student Fare Card, which is valid for one school fiscal year. College and vocational Student ID cards are valid for an academic term. Persons 62 years and older qualify for a senior ID Card. Personalized ID cards for the disabled are issued for various time periods based on the individual's disability. College/Vocational and disabled applications are available at Metro Customer Centers or from our website, metro.net. Photo-less Student Fare Cards for grades K-12 are available at Metro Customer Centers and through participating LAUSD and Pasadena Unified schools. Senior ID cards are made at Customer Centers and some Senior Centers.

MetroMail Program

The MetroMail Program provides customers with the convenience of purchasing monthly passes, stamps and tokens through the mail. Various


FY06 Budget

Customer Service Transportation Services • III-13

individuals, companies, schools, non-profits and government agencies use this service. They submit the MetroMail Order Form, along with the appropriate payment and the fare media is sent in a timely manner via mail or UPS. MetroMail Order Forms are available on metro.net.

E-Commerce On-Line Pass Program

For added convenience, Metro and EZ transit passes can be purchased on-line with use of a credit card. Orders can be placed at metro.net/passes and will be shipped before the 1st of the following month.

Metro Customer Centers

The four Metro Customer Centers located in Los Angeles County provide residents with various transit services. The Centers sell EZ regional and Metro passes and tokens; accept Reduced Fare applications from college/vocational students and disabled customers; issue Student Fare Cards and Senior ID cards; display rail/bus schedules, maps and brochures; distribute special promotional information; and provide vendor pick up and exchange services. The Centers also support the Los Angeles County Buy-Down Subsidy program by processing certifications and selling county fare media to the general public, students (grades K-12 and college vocational), seniors and disabled residents who reside in unincorporated areas of the County. Some locations also sell fare media for Foothill Transit and Los Angeles Department of Transportation lines and participate in the Cityride Scrip redemption program.

The Metro Lost and Found service is housed at the Wilshire Customer Center. This operation receives, processes and returns claimed articles and disposes of unclaimed items. Customer Center and Lost and Found information is available on metro.net.

Metro Pass and Token Sales Vendor Network

The Metro Pass and Token Sales Vendor Network includes over 600 retail business locations where patrons can purchase Metro passes and tokens and also EZ regional transit passes, which can be used on participating transit bus services. Vendors are located throughout the Los Angeles County area and a complete list of sales outlets is provided on metro.net. Metro also offers a program for Non-Profit Community groups to increase member benefits, while supporting their community and transit services. Once approved, these groups may purchase discounted Metro passes and tokens and pass that savings on to their members. Applications are available on metro.net under Support Your Community.

metro.net

metro.net is the Metro’s presence on the world wide web. Offering an interactive trip planner and comprehensive transit service information for the entire Southern California region, metro.net is accessible from anywhere in the world 24 hours a day. In 2004, the site had over 100 million visitors. The site also features complete information regarding Metro’s other transportation services and projects.


FY06 Budget

III-14 • Transportation Services Customer Service


IV. Financial Details by Fund


FY06 Budget

Financial Details by Fund Business-Type Activities • IV-1

BUSINESS-TYPE ACTIVITIES

Enterprise Fund

Fund Narrative

The Enterprise Fund accounts for business-type activities in a manner similar to the private sector. The business-type activities included within the Enterprise Fund are Metro Bus, contracted bus service, Metro Rail, and Regional Activities. In addition, the Enterprise Fund records capital and debt service activities related to transit operations.

Revenues

Bus and rail operating revenues recover approximately 26% of the cost to provide transit services. The remaining 74% is funded through a combination of non-operating revenues (primarily federal grants) and transfers (Prop A & C, TDA and STA tax-based revenues).

Expenses

The Enterprise Fund budget of $1,962.9 million is composed of $1,061.8 million operating expenses, $614.2 million for capital projects and $286.9 million for debt service activities. These are discussed in more detail later in this section.

Approximately 67% of the Enterprise Fund operating expenses is for labor and fringe benefits. Fuel and materials represents another 14% of expenses, with the remainder being comprised of contracted services (3%), security (6%), casualty and liability (4%), and other expenses (6%). $243.8 million, or 23%, of operating expenses are general and administrative in nature.

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

FY01Actual

FY02Actual

FY03Actual

FY04Actual

FY05Amended

FY06Budget

Enterprise Fund Revenue

Fare Revenue Other Operating Revenue Subsidy


FY06 Budget

IV-2 • Business-Type Activities Financial Details by Fund

Service Levels

Cost Per Unit of Service

REVENUE REVENUE UNLINKEDSERVICE SERVICE PASSENGER PASSENGER

Mode HOURS MILES TRIPS MILESBus Local & Rapid 7,052,542 86,626,793 356,150,437 1,371,270,959

Orange Line 63,725 974,588 2,246,400 15,724,800 Contracted Svc 527,345 7,365,619 11,500,000 55,598,641

Subtotal Bus 7,643,612 94,967,000 369,896,837 1,442,594,400

Rail Blue Line 202,296 4,407,655 22,445,008 116,712,386 Green Line 83,987 2,566,850 9,032,274 46,967,158

Gold Line 70,282 1,493,412 4,681,782 24,344,921 Red Line 262,574 6,030,219 35,322,958 162,485,995

Subtotal Rail 619,139 14,498,136 71,482,022 350,510,460 Totals 8,262,751 109,465,136 441,378,859 1,793,104,860

REVENUE REVENUE UNLINKEDSERVICE SERVICE PASSENGER PASSENGER

Mode HOURS MILES TRIPS MILESBus Local & Rapid $111.93 $9.11 $2.22 $0.58

Orange Line $154.88 $10.13 $4.39 $0.63Contracted Svc $65.54 $4.69 $3.01 $0.62

Subtotal Bus $109.09 $8.78 $2.25 $0.58

Rail Blue Line $313.95 $14.41 $2.83 $0.54Green Line $494.49 $16.18 $4.60 $0.88

Gold Line $598.33 $28.16 $8.98 $1.73Red Line $297.18 $12.94 $2.21 $0.48

Subtotal Rail $363.61 $15.53 $3.15 $0.64

Combined Bus & Rail $128.16 $9.67 $2.40 $0.59


FY06 Budget


Fare Revenue

The chart below depicts actual passenger fare revenue received in FY02 through FY04, plus projected receipts for FY05 and FY06. From FY02 to FY03, fare revenue grew by 2% as service levels increased for both bus and rail modes. In FY04, a 35-day strike partially offset by a fare restructuring resulted in a 10% drop in fare revenue. As a consequence of the fare restructuring and uninterrupted service, FY05 fare revenue shows growth over FY04. Fare revenue in FY06 will drop about 1% as a

result of a decline in rail service and a continued shift to discounted fare media.

Fare revenue is allocated among modes and lines according to ridership estimates for each line.

Fare Revenue by Mode

The chart below illustrates the estimated FY06 fare revenue shares by mode. As

shown, most of Metro’s fare revenue is attributed to bus operations.

84%

8%

8%

Bus

Light Rail

Heavy Rail

Fare Revenue (in millions)

$241$247

$222

$265 $264

FY02 FY03 FY04 FY05 FY06

Statement of Revenues and ExpensesFor the Years Ending June 30, 2004, 2005, and 2006


Enterprise Fund by ModeFY04

ActualFY05

AmendedFY06

BudgetFY04

ActualFY05

AmendedFY06

Budget

1 Operating revenues:2 Passenger fares 186.4$ 221.0$ 221.0$ 18.5$ 21.4$ 21.6$ 3 Route subsidies 0.6 0.5 0.5 - - - 4 Auxiliary transportation 10.7 13.8 15.7 0.8 - - 5 Total operating revenues 197.7 235.3 237.2 19.3 21.4 21.6 67 Operating expenses:8 Operating 535.8 594.3 637.3 89.6 110.5 116.4 9 General & administrative 188.5 195.1 197.0 22.8 31.6 30.7

10 Operating expenses, excluding depreciation: 724.3 789.4 834.3 112.4 142.1 147.1 1112 Operating loss (526.6) (554.1) (597.1) (93.1) (120.7) (125.5) 1314 Operating subsidies and grants (other expenses):15 Local operating grants 429.5 405.8 443.7 65.5 67.4 85.2 16 State operating grants 0.5 0.7 0.1 - - - 17 Federal operating grants 89.4 145.5 146.0 25.8 53.4 39.4 18 Interest revenues 3.5 2.2 3.8 - - - 19 Net (decline) in fair value of investments (4.9) - - (0.5) - - 20 Interest expense (6.9) (2.8) (2.6) - - - 21 Other revenue 2.1 2.7 6.1 0.0 - 0.9 22 Total operating subsidies and grants (other expenses) 513.3 554.1 597.1 90.8 120.7 125.5 2324 Gain (loss) before debt and capital items (13.3) - - (2.2) - - 2526 Debt service & capital grants / contributions: *27 Local 28 Capital 81.9 77.1 79.5 12.7 28.6 22.9 29 Debt service 51.5 54.6 67.2 139.1 147.4 153.0 30 Debt service other revenues 0.8 0.8 0.5 2.3 2.2 1.4 31 Proceeds from financing 23.7 155.8 68.1 17.0 134.5 95.9 32 State - capital 2.3 32.0 24.7 8.7 1.9 43.6 33 Federal - capital 122.4 188.5 82.5 6.2 122.2 175.8 34 Total debt service & capital grants / contributions 282.7 508.8 322.4 186.0 436.8 492.6 3536 Capital program :37 Operating capital 151.7 271.4 163.3 10.6 38.2 30.6 38 Major construction 78.5 182.0 91.4 34.1 249.0 307.6 39 Total capital program 230.3 453.4 254.7 44.7 287.2 338.2 4041 Debt service expenses: *42 Interest expense 33.8 33.1 35.9 91.3 89.4 92.7 43 Principal payments 17.7 21.5 31.3 47.8 58.0 60.3 44 Services 0.8 0.8 0.5 2.3 2.2 1.4 45 Total debt service expenses 52.4 55.4 67.7 141.4 149.6 154.4 4647 Net surplus (deficit) (13.3)$ -$ -$ (2.2)$ -$ -$

* Excludes defeased leases and includes non-cash itemsNote: Totals may not add due to rounding.

IV-4 • Business Type Activities Financial Details by Fund


Bus Light Rail

FY04Actual

FY05Amended

FY06Budget

FY04Actual

FY05Amended

FY06Budget

FY04Actual

FY05Amended

FY06Budget

12 16.5$ 22.8$ 21.1$ -$ -$ -$ 221.5$ 265.2$ 263.7$ 3 - - - - - - 0.6 0.5 0.5 4 0.4 - - - - - 11.9 13.8 15.7 5 16.9 22.8 21.1 - - - 234.0 279.4 279.9 678 47.7 59.2 63.1 0.6 0.9 1.2 673.7 764.9 818.0 9 18.5 15.0 14.9 1.5 1.5 1.2 231.3 243.2 243.8

10 66.2 74.2 78.0 2.1 2.4 2.4 905.0 1,008.1 1,061.8 1112 (49.3) (51.4) (56.9) (2.1) (2.4) (2.4) (671.0) (728.7) (782.0) 131415 51.1 32.4 48.3 2.6 2.4 2.4 548.7 508.0 579.6 16 - - - - - - 0.5 0.7 0.1 17 - 19.0 8.2 - - - 115.2 217.9 193.6 18 - - - - - - 3.5 2.2 3.8 19 (0.5) - - - - - (5.9) - - 20 - - - - - - (6.9) (2.8) (2.6) 21 - - 0.5 - - - 2.1 2.7 7.5 22 50.6 51.4 56.9 2.6 2.4 2.4 657.3 728.7 782.0 2324 1.3 - - 0.5 - - (13.7) - - 25262728 (4.0) 1.5 7.1 - - - 90.5 107.3 109.5 29 56.0 59.3 61.6 - - - 246.6 261.3 281.8 30 0.9 0.9 0.6 - - - 4.0 4.0 2.5 31 41.7 16.6 12.3 - - - 82.4 306.9 176.3 32 0.3 - - - - - 11.4 33.9 68.3 33 15.7 4.4 1.8 - - - 144.3 315.0 260.2 34 110.6 82.8 83.4 - - - 579.3 1,028.5 898.5 353637 7.5 5.2 8.9 - - - 169.8 314.8 202.9 38 46.3 17.4 12.4 - - - 158.9 448.4 411.3 39 53.8 22.6 21.3 - - - 328.7 763.2 614.2 404142 36.8 36.0 37.3 - - - 161.9 158.5 166.0 43 19.2 23.3 24.3 - - - 84.7 102.8 115.8 44 0.9 0.9 0.6 - - - 4.0 4.0 2.5 45 56.9 60.2 62.1 - - - 250.6 265.3 284.3 4647 1.3$ -$ -$ 0.5$ -$ -$ (13.7)$ -$ -$

Financial Details by Fund Business Type Activities • IV-5

FY06 Budget

TotalNon-Modal RegionalHeavy Rail



FY06 Budget


Capital Program Description

The Capital Program includes projects to improve infrastructure, acquire equipment, and construct new bus and rail transportation facilities. The capital budget is developed concurrently and approved with the operating budget. The Capital Program is discussed in greater detail in Section V.

Commencing in FY06, Capital Program activity will be budgeted in the Enterprise Fund. Revenues

Revenues for the Capital Program are primarily from intergovernmental grants for infrastructure improvements and equipment acquisition projects (capital projects) and a combination of intergovernmental grants and long-term debt for the major bus and rail projects.

The Capital Program reflects cost estimates and implementation plans for projects based on agency priorities as established by the Capital Review Committee. Funding is allocated based on plans and schedules to provide resources for project implementation. Expenditures

Capital Program expenditures are comprised of direct project costs for the acquisition, expansion, rehabilitation of infrastructure, and capital assets as well as staff necessary for successful design, construction, acquisition, and implementation. .


FY06 Budget


Debt Program Description

Debt Service activity is recorded in the Enterprise, General and Agency Funds. This is detailed in the schedule titled “LACMTA FY06 Debt Service Schedule” in Appendix 4.

Proceeds from this year’s commercial paper issuance and any proceeds from long-term bond issuance will be used to fund the required local contribution to major capital projects including bus, rail, and highway capital equipment and facilities.

Total LACMTA debt is $4.4 billion. The Agency Fund accounts for another $100.4 million in Benefit Assessment District debt.

The LACMTA has refunded more than $3.5 billion of its long-term debt to achieve debt service savings. Those savings exceed $242 million on a present value basis and $332 million on a cash basis. Revenues

Annual revenue budgeted for the payment of debt service consists primarily of local sales tax proceeds from Proposition A and Proposition C. Additional sources of debt repayment include federal grants, monies previously set aside pursuant to lease/leaseback transactions, and other miscellaneous revenue receipts. Expenditures

Commercial paper will be issued to provide interim funding for capital expenditures prior to the issuance of long-term bonds. If deemed appropriate during the fiscal year, long-term bonds

may be issued. Otherwise, long-term bonds are anticipated to be issued in subsequent fiscal periods to retire the commercial paper and provide permanent, long-term financing.

The total FY06 debt service requirement is $443.9 million; $419.1 million is included in the Enterprise Fund. The remaining $24.8 million is budgeted in the General and Agency funds. See the FY06 Debt Service Schedule for further detail. Debt Limitations/Use Restrictions

LACMTA issues additional debt consistent with the Board-adopted multi-year Capital Program. Revenues are allocated in accordance with the applicable ordinances, legislation, and planning processes.

Although LACMTA’s bonds are not subject to California constitutional debt limitations, the LACMTA has contractual covenants as part of its bond indentures that limit the issuance of additional debt. The additional bond covenants restrict the percentage amount of specific revenue sources that may be used to service debt. These covenants provide protection to bondholders by limiting the amount of additional bonds that may be issued.

LACMTA has been assigned high credit ratings on its bonds as a result of having sound security provisions in the bond indentures, properly managing its finances, and pledging sales tax revenues to repay the bonds. LACMTA’s senior lien sales tax revenue bonds have been assigned credit ratings of Aa3, AA-, and A+ by Moody’s Investors Service, Standard & Poor’s, and Fitch Ratings, respectively.


FY06 Budget


Debt Policy

The LACMTA’s debt policy establishes guidelines for the issuance and management of the agency’s debt. The policy’s priorities are as follows:

1. Achieve the lowest cost of capital.

2. Maintain a prudent level of financial risk.

3. Preserve future financial flexibility.

4. Maintain strong credit ratings and good investor relations.

5. Ensure that local, emerging and disadvantaged business enterprise investment banking and financial firms will be considered for, and utilized in, lead and senior manager roles when appropriate.

The policy calls for a Capital Plan of at least five years to be developed annually. The plan must indicate its debt service requirements and the effect on the agency’s debt burden.

The policy prescribes that long-term debt should be used to finance essential capital facilities, projects and certain equipment where it is cost-effective and fiscally prudent. Long-term debt may not be used to fund any operational activities.

Lease financing should be used when it is advantageous to do so either financially or operationally.

Short-term debt is permissible as interim funding as long as it is replaced by permanent funding.

The level of unhedged variable rate debt is limited to 20% of all outstanding debt. The corresponding limit for the total of hedged and unhedged variable rate debt is 50%.

The policy sets target and maximum amounts of revenue that can be dedicated to debt service as percentages of the respective revenue sources. Details are shown in Appendix 4.

Issuance of long-term debt secured by Prop A and Prop C sales tax revenues is also limited by additional bond test covenants. Prior to the issuance of new bonds secured by Prop A and Prop C sales tax revenues, the LACMTA must demonstrate that sales tax revenue collected for a certain period prior to the issuance of the new bonds is sufficient to provide minimum debt service coverage levels for all debt service, including debt service related to the new bonds.


FY06 Budget

Financial Details by Fund Business Type Activities • IV-9

FY06 Debt Service Coverage Ratios

(Amounts in millions)FY04 FY05 FY06 Foot-

Actual Budget Adopted notes1 Proposition A:2 Net Sales Tax Revenue 432.5$ 446.2$ 464.5$ 1 3 First Tier Senior Lien Annual Debt Service 131.5 137.5 139.1 4 First Tier Senior Lien Debt Service Coverage 3.29x 3.25x 3.34x56 Residual Net Sales Tax Revenue 301.0$ 308.7$ 325.4$ 7 First Tier Second Senior Lien Annual Debt Service 3.3 3.4 3.3 8 Debt Service Coverage 3.21x 3.17x 3.26x9

10 Residual Net Sales Tax Revenue 297.7$ 305.3$ 322.1$ 11 Second Tier Annual Debt Service 5.0 5.4 5.2 12 Second Tier Debt Service Coverage 3.09x 3.05x 3.15x131415 Proposition C:16 Net Sales Tax Revenue 461.3$ 475.9$ 495.5$ 1 17 Second Senior Lien Annual Debt Service 91.6 103.9 100.1 18 Debt Service Coverage 5.04x 4.58x 4.95x192021 General Revenue:22 Pledged Revenue 239.6$ 303.7$ 292.6$ 23 Annual Debt Service 25.5 25.4 26.0 24 Debt Service Coverage 9.40x 11.96x 11.25x

Footnotes:1 - Sales tax revenue net of required allocations to local governments for transit purposes and less the administrative fee paid to the State Board of Equalization.


FY06 Budget


Projected Debt Service Requirements (FY06 – FY10)

Foot-Principal (1) Interest notes

1 Proposition A:2 FY06 Budget 56,383,786$ 96,240,121$ 1 3 FY07 Projected 68,219,034 92,842,524 1 4 FY08 Projected 65,979,932 89,282,010 1 5 FY09 Projected 69,397,631 80,509,715 1 6 FY10 Projected 72,897,446 82,152,952 1 7 Total 332,877,829 441,027,322 1 89 Proposition C:

10 FY06 Budget 39,270,000 74,137,779 1 11 FY07 Projected 42,030,000 71,896,853 1 12 FY08 Projected 43,830,000 69,503,974 1 13 FY09 Projected 47,350,000 67,003,652 1 14 FY10 Projected 47,365,000 64,703,455 1 15 Total 219,845,000 347,245,713 1

17 General Revenue:18 FY06 Budget 16,905,000 9,135,043 19 FY07 Projected 15,840,000 8,666,267 20 FY08 Projected 16,430,000 8,117,069 21 FY09 Projected 17,190,000 7,473,415 22 FY10 Projected 18,050,000 6,753,176 23 Total 84,415,000 40,144,970

25 Grant Revenue:26 FY06 Budget - 7,342,763 27 FY07 Projected - 7,342,763 28 FY08 Projected 29,450,000 6,635,963 29 FY09 Projected 39,355,000 5,632,411 30 FY10 Projected 31,160,000 4,791,091 31 Total 99,965,000 31,744,990

33 Special Revenue: 2 34 FY06 Budget 17,835,000 4,422,365 35 FY07 Projected 18,935,000 3,387,445 36 FY08 Projected 20,105,000 2,271,698 37 FY09 Projected 21,365,000 1,289,813 38 FY10 Projected 22,170,000 443,950 39 Total 100,410,000 11,815,270 4041 Capitalized Leases:42 FY06 Budget 8,926,002 1,594,772 43 FY07 Projected 3,868,265 1,090,075 44 FY08 Projected 2,567,976 866,901 45 FY09 Projected 2,749,155 685,622 46 FY10 Projected 2,638,798 495,979 47 Total 20,750,196$ 4,733,349$ 4849 Other Debt: 3 50 FY06 Budget 116,643,566 2,830,935 51 FY07 Projected 36,135,667 3,203,148 52 FY08 Projected 45,003,085 4,096,155 53 FY09 Projected 14,214,519 3,872,932 54 FY10 Projected 67,699,716 12,460,880 55 Total 279,696,554$ 26,464,050$

Footnotes:1 - Includes projected interest for the Commercial Paper programs.2 - The Special Revenue debt service is solely an obligation of two Benefit Assessment Districts and is paid from assessments levied within each District.3 - Other Debt represents outstanding leveraged leases. Prinicipal and interest payments for the leveraged leases are made from restricted funds on deposit, not from future revenues.


FY06 Budget

Financial Details by Fund Governmental Activities • IV-11

GOVERNMENTAL ACTIVITIES Governmental activities are budgeted in the Governmental funds comprised of the Special Revenue fund and the General fund. They contain Metro’s non-proprietary activities. The Special Revenue fund budget includes the

administration of special transportation programs and the pass-through funding to other agencies in Los Angeles County. Most of the General fund budget is made up of Metro’s real estate activities.

Statement of Revenues, Expenditures and Changes in Fund BalancesFor the Years Ending June 30, 2004, 2005 and 2006

(Amounts in millions) Governmental Funds Total

Special Revenue Fund

Governmental Funds FY04 Actual

FY05 Amended

FY06 Budget

FY04 Actual

FY05 Amended

FY06 Budget

FY04 Actual

FY05 Amended

FY06 Budget

1 Revenue:

2 Sales tax 1,478.4$ 1,527.2$ 1,594.3$ -$ -$ -$ 1,478.4$ 1,527.2$ 1,594.3$

3 Intergovernmental grants 105.3 134.0 93.0 4.3 0.7 6.9 109.6 134.7 99.9

4 Investment income 6.4 13.4 13.1 1.6 3.6 2.2 8.0 17.0 15.3

5 Net decline in fair value of investments (2.5) - - - - - (2.5) - -

6 Lease and rental - - - 11.0 10.5 10.7 11.0 10.5 10.7

7 Proceeds on lease/leaseback to service - - - 8.1 - - 8.1 - -

8 Licenses and fines 7.3 7.0 7.0 0.5 0.5 0.5 7.8 7.5 7.5

9 Other 5.1 13.6 4.9 12.1 2.1 2.1 17.2 15.7 7.0

10 Total Revenues 1,600.0 1,695.2 1,712.2 37.6 17.4 22.3 1,637.6 1,712.6 1,734.6

11

12 Expenditures:

13 Subsidies 1,538.7 1,716.6 1,711.2 27.9 46.6 50.0 1,566.6 1,763.2 1,761.2

14 Services 47.0 72.5 59.3 - 0.6 5.7 47.0 73.1 65.0

15 Debt and interest expenditures

16 Interest and fiscal charges - - - 0.6 0.7 0.7 0.6 0.7 0.7

17 Bond principal & commercial paper retirement - - - 0.8 1.5 1.6 0.8 1.5 1.6

18 General and administrative 40.1 49.1 53.1 7.0 7.5 6.4 47.1 56.6 59.5

19 Total expenditures 1,625.8 1,838.2 1,823.6 36.3 57.0 64.4 1,662.1 1,895.2 1,888.0

20

21 Net change in fund balances (25.7) (143.1) (111.2) 1.3 (39.5) (42.1) (24.4) (182.6) (153.4)

22

23 Fund balances - beginning of year 629.0 603.3 460.2 141.5 142.8 103.3 770.5 746.1 563.5

24

25 Fund balances - end of year 603.3$ 460.2$ 348.9$ 142.8$ 103.3$ 61.2$ 746.1$ 563.6$ 410.1$


IV-12 • Governmental Activities Financial Details by Fund

General Fund



FY06 Budget


Special Revenue Fund

Fund Narrative

The Special Revenue fund (SRF) accounts for the proceeds of specific revenue sources (other than trusts for individuals, private organizations, other governments, or major capital projects) that are earmarked for specified purposes. The SRF reflects Metro’s responsibility to administer special transportation programs as well as its duty to allocate transportation funds to local and regional agencies throughout Los Angeles County. The SRF is a major fund as defined by the Governmental Accounting Standards Board Statement No. 34.

Revenue

The primary source of revenue is sales tax receipts: Proposition A sales tax, Proposition C sales tax, Transportation Development Act (TDA) sales tax, and State Transit Assistance (STA) sales tax on gasoline. Other sources include Service Authority for Freeway Emergencies (SAFE), Congestion Mitigation and Air Quality (CMAQ), and other funds used to account for programs with dedicated revenue.

Expenditures

Laws, ordinances, or grants that created these funds designate their use. Regional programs detailed in the following section account for 65.2% of Special Revenue expenditures. The remaining 34.8% goes for SAFE, FSP, other contracts, administrative costs and labor.


FY06 Budget


The chart below illustrates sales tax revenues received from Proposition A, Proposition C, and Transportation Development Act sales taxes (excluding STA, which is allocated on a discretionary basis). Between FY02 and FY04, actual

sales tax revenues increased at an average annual rate of 4.8%. The FY06 budget revenues are projected to grow at 4.1%, which is LACMTA’s twenty-year historical average growth rate.

Sales Tax Revenue

(Amounts in billions)

The chart below depicts Los Angeles County sales tax revenue projections for FY06 by major spending categories and is based on the share of sales tax receipts in

prior periods. General Retail, Transport, and Inter-Business sales have consistently held the largest shares of Los Angeles County’s sales taxes.

Sales Tax Revenue Shares

(Projections by source for FY06)

1.32

1.38

1.45

1.49

1.55

FY02 FY03 FY04 FY05 FY06

9%

15%

29%21%

1%

25%

ConstructionFoodGeneral RetailInter-BusinessMiscellaneousTransport


FY06 Budget


Description of Revenues

PROPOSITION A

Revenue is generated from a ½ percent sales tax in Los Angeles County pursuant to Prop A Ordinance of 1980. The Ordinance specifies that funds must be used exclusively to improve transit in Los Angeles County.

Metro is responsible for administering Prop A funds and the interest earned. It uses 5% of Prop A it receives for administration.

The rest (95%) of Prop A is apportioned:

• 25% Local Return program

• 35% Rail Development Program

• 40% Discretionary PROPOSITION C

Revenues are generated from Los Angeles County’s ½ percent sales tax for “public transit purposes” pursuant to Prop C Ordinance of 1990. Specifically, eligible uses are:

• The maintenance, improvement and expansion of public transit

• Congestion reduction

• Increase of mobility

Metro uses 1.5% of overall funds for administrative purposes. The remaining 98.5% is apportioned as follows:

• 5% rail and bus security

• 10% commuter rail/transit centers

• 20% local return

• 25% transit-related improvements to streets, highways, and fixed guideways on railroad rights-of-way

• 40% discretionary

TRANSPORTATION DEVELOPMENT ACT

Revenues are derived from the ¼ percent of the 7.25% retail sales tax collected statewide. The ¼ percent is returned by the State Board of Equalization to each county according to the amount of tax collected in that county. TDA Article 4: Public Transportation Systems

Up to 93% of total available TDA funds are allocated to municipal transit operators, Transit Districts and Joint Power Authorities. Allocation is subject to the Formula Allocation Procedure (based on vehicle service miles and fare revenue). STATE TRANSIT ASSISTANCE

These are revenues derived from sales and use taxes on diesel fuel and gasoline as follows:

• 4.75% sales tax on diesel fuel

• 4.75% sales tax on $0.09 of the gasoline state excise tax on gasoline

• “spillover”: sales tax revenues on all sales (including gas) exceed sales tax revenues on all sales (excluding gas).

Population share

50% is allocated to counties based on the ratio of each county’s population to the state’s population. This is eligible for transit operations or roads.

Operator revenue share

50% is allocated to counties based on the ratio of the total transit operator’s revenues to the total revenues of transit operators in the state. This is eligible for transit operations or capital.


Combined Statement of Revenues, Expenditures and Changes in Fund Balances For the Years Ending June 30, 2004, 2005 and 2006

(Amounts in millions)Proposition A Proposition C Transportation Develop. Act

Special Revenue Funds FY04 Actual

FY05 Amended

FY06 Budget

FY04 Actual

FY05 Amended

FY06 Budget

FY04 Actual

FY05 Amended

FY06 Budget

FY04 Actual

FY05 Amended

FY06 Budget

1 Revenue:

2 Sales tax -$ -$ -$ 576.7$ 595.0$ 619.3$ 576.7$ 594.9$ 619.3$ 294.0$ 302.4$ 314.8$

3 Intergovernmental grants 42.1 44.4 44.2 - - - 59.5 75.5 33.4 0.0 - -

4 Investment income - - - 0.8 2.8 2.0 2.2 7.0 7.6 2.3 2.2 2.0

5 Net decline in fair value of investments - - - (0.6) - - (1.9) - - - - -

6 Licenses and fines - - - - - - 0.1 - - - - -

7 Other - - - - - 0.0 6.1 - - - -

8 Total revenues 42.1 44.4 44.2 576.8 597.8 621.3 636.5 683.5 660.4 296.3 304.6 316.8

9

10 Expenditures:

11 Subsidies - - 0.1 535.5 616.1 614.6 672.6 698.3 698.7 300.3 342.3 320.8

12 Services 10.9 8.2 8.4 - - - 28.6 57.0 38.6 - - -

13 General and administrative 27.3 36.2 39.6 - - - 11.0 10.3 10.7 - - -

14 Total expenditures 38.2 44.4 48.2 535.5 616.1 614.6 712.2 765.6 748.0 300.3 342.3 320.8

15

16 Net change in fund balances 3.9 - (3.9) 41.4 (18.3) 6.8 (75.7) (82.1) (87.6) (3.9) (37.7) (4.0)

17

18 Fund balances - beginning of year - 3.9 3.9 71.1 112.5 94.2 334.5 258.9 176.8 147.0 143.0 105.4

19

20 Fund balances - end of year 3.9$ 3.9$ -$ 112.5$ 94.2$ 101.0$ 258.9$ 176.8$ 89.1$ 143.0$ 105.4$ 101.4$

* Other includes regional EZ Transit Pass Program.


IV-16 • Special Revenue Fund Financial Details by Fund

Propositions A & C, TDAAdministration

State Transit Assistance SAFE Other * Total

FY04 Actual

FY05 Amended

FY06 Budget

FY04 Actual

FY05 Amended

FY06 Budget

FY04 Actual

FY05 Amended

FY06 Budget

FY04 Actual

FY05 Amended

FY06 Budget

1

2 31.1$ 34.9$ 40.8$ -$ -$ -$ -$ -$ -$ 1,478.4$ 1,527.2$ 1,594.3$

3 - - - - - - 3.6 14.1 15.3 105.3 134.0 93.0

4 0.8 0.5 0.5 0.3 0.9 1.0 - - - 6.4 13.4 13.1

5 - - - - - - - - - (2.5) - -

6 - - - 7.3 7.0 7.0 - - - 7.3 7.0 7.0

7 - - - - - - 5.1 7.5 4.9 5.1 13.6 4.9

8 31.9 35.4 41.3 7.6 7.9 8.0 8.8 21.6 20.2 1,600.0 1,695.2 1,712.2

9

10

11 22.4 39.4 58.7 - - - 7.9 20.6 18.3 1,538.7 1,716.6 1,711.2

12 - - - 6.8 7.3 11.1 0.7 - 1.2 47.0 72.5 59.3

13 - - - 1.4 1.8 2.0 0.4 0.8 0.7 40.1 49.1 53.1

14 22.4 39.4 58.7 8.2 9.1 13.1 9.0 21.3 20.2 1,625.8 1,838.2 1,823.6

15

16 9.4 (4.0) (17.4) (0.6) (1.2) (5.2) (0.2) 0.3 - (25.7) (143.1) (111.2)

17

18 49.0 58.4 54.5 27.2 26.6 25.4 0.1 (0.1) 0.2 629.0 603.3 460.2

19

20 58.4$ 54.5$ 37.1$ 26.6$ 25.4$ 20.3$ (0.1)$ 0.2$ 0.2$ 603.3$ 460.2$ 348.9$

Financial Details by Fund Special Revenue Fund • IV-17



FY06 Budget


Regional Programs

Metro provides funding directly to projects through grants of local funds or indirectly through allocated federal or state grants. Local funds consist mainly of Proposition A and Proposition C funds which are disbursed by Metro to agencies based on an approved spending plan. Federal and state grant funds are programmed or allocated by Metro and disbursed directly by the granting agency or disbursed by Metro to the grantee or recipient. The recipient agency is responsible for

administering and managing the federal or state grant.

The FY06 budget for local funding commitments to the Call for Projects (CFP) reflects current year cash flow. Funding for all other local programs, including Municipal Operator programs, ASI, Proposition A Incentive, Local Return, and Metrolink, reflects the FY06 programmed amounts.

FY06 Revenue Summary - Regional Programs Budget

(Amounts in thousands)

Funding Category

Transit Operator

Programs *

ADA/ Accessibility

Funding Program

CFP Projects & Programs

Other Local Projects

Commuter Rail & Intercity Rail

Other Planning Projects

Total Subsidy Budget

1 Prop A - Local Return 25% -$ -$ 147,095$ -$ -$ 147,095 2 Prop A - Discretionary 95% of 40% 204,376 - - - - 204,376 3 Prop A - Incentive 5% of 40% - 11,768 - - - 11,768 4 Prop C - Local Return 20% - - 122,006 - - 122,006 5 Prop C - Security 5% 31,253 - - - 31,253 6 Prop C - Commuter Rail 10% - - 12,565 - 52,525 65,089 7 Prop C - Streets & Hwys 25% - - 111,467 - - 111,467 8 Prop C - Discretionary 40% 88,124 25,031 132 6,050 - 119,337 9 Other - - 23,200 18,194 - 41,394

10 TDA 280,186 - 22,981 - - 303,167 11 STA Formula 31,193 - - - - 31,193 12 Administration (Prop A, Prop C, TDA) - 65 65 13 Interest (Prop A, Prop C, TDA, STA) 2,802 - - - - 2,802 14 Total 637,935$ 36,799$ 439,445$ 24,244$ 52,525$ 65$ 1,191,013$

NOTES: *Transit Operator Programs category now reflects the Metro Bus Operations allocations (now reflected as subsidies).

Regional Subsidy Program Budget Detail

(Amounts in thousands)

Regional Fund DescriptionFY04

Actual FY05

Amended FY06

Budget1

2 TRANSIT OPERATOR PROGRAMS3 Formula Allocated Funds - other agencies (1) 150,891$ 188,086$ 157,315$ 4 Formula Allocated Funds - MTA portion (2) 338,682 361,548 363,677 5 Transit Security 3,943 5,235 5,6006 Transit Security - MTA portion (2) 21,847 23,431 25,6537 BSIP & MOSIP Programs 9,783 19,188 19,7558 BSIP & MOSIP Programs - MTA portion (2) 52,316 55,677 56,6069 Transit Service Expansion 5,815 5,962 6,123

10 Base Bus Restructuring 3,393 3,122 3,20511 Transit Operator Programs total 586,671 662,250 637,93512

13 ADA/ACCESSIBILITY FUNDING PROGRAMS14 ASI - Access Services, Inc. (3) 61,800 65,374 25,03115 Proposition A Incentive programs 5,441 11,304 11,76816 ADA Accessibility Funding Programs total 67,241 76,678 36,79917

18 CFP PROJECTS AND PROGRAMS19 Proposition A and C Local Return 248,306 272,452 269,10120 Call for Projects & Rapid Bus (1) 66,326 172,335 147,36321 TDA Bikeways/Transit/Streets & Hwys Pgms 19,535 21,921 22,98122 CFP Projects and Programs total 334,166 466,708 439,44523

24 OTHER LOCAL PROJECTS25 Immediate Needs 5,574 5,000 5,00026 SHORE/General Relief Tokens 228 1,050 1,05027 Regional Grantee-FTA (1) 3,076 13,585 13,79428 EZ Pass Program 4,800 7,500 4,400 29 Other Local Projects total 13,678 27,135 24,24430

31 COMMUTER RAIL & INTERCITY RAIL PROGRAMS32 Metrolink 37,682 41,512 52,50033 Intercity Rail 25 25 2534 Commuter Rail & Intercity Rail Programs total 37,707 41,537 52,52535

36 OTHER PLANNING PROJECTS37 Other P&P Planning (MTA/OCTA Commuter) (4) - - 6538 Other Planning Projects total - - 6539

40 TOTAL MTA FUNDED PROGRAMS 1,039,463$ 1,274,308$ 1,191,013$

NOTES:(1) Key revisions to FY05 Budget include:

a) $30M increase for municipal operator (Santa Monica).

b) $1M decrease to Call-for-Projects/Rapid Bus (funds transferred from Rapid Bus subsidies).

c) $1M increase to Regional Grantee-FTA (Board directive - JARC).

(2) Schedule now includes MTA Bus Operations allocations (now reflected as subsidies).

(3) FY06 Budget for ASI excludes $49.2M of Federal funds; only the local funds are reflected.

(4) Other Planning Projects reflect a former General Fund project reclassified to the Special Revenue Fund.

Financial Details by Fund Governmental Avtivities • IV-19



FY06 Budget


Regional Programs Descriptions Transit Operator Programs

Transit Operator Programs provide for the equitable allocation of STA, TDA, Proposition A 40% Discretionary, and Propositions A and C interest revenues to 17 transit service providers in Los Angeles County. These funds are allocated based on formulas prescribed by state law and by the LACMTA Board of Directors.

In addition, operators receive Proposition C 40% Discretionary funds under five programs approved by the Board of Directors: Foothill Mitigation Program, Transit Service Expansion, Discretionary Bus Restructuring, Bus Service Improvement Plan (BSIP) including Overcrowding Relief, and the Municipal Operator Service Improvement Program (MOSIP).

ADA/Accessibility Funding Programs

Metro contracts with Access Services, Inc., (ASI) to provide complementary paratransit services for persons with disabilities who cannot use fixed route buses and trains, enabling the County’s fixed route operators to be fully compliant with ADA requirements. ASI is also the Consolidated Transportation Services Agency (CTSA) for Los Angeles County, responsible for improving mobility options and for coordinating specialized transportation. Paratransit Programs

The Proposition A Discretionary Incentive program provides support to many local jurisdictions within Los Angeles County for the provision of public and private paratransit service.

Call for Projects and Other Transportation Improvement Programs Propositions A and C Local Return

The Proposition A and Proposition C ordinances require that each of the 88 cities and Los Angeles County receives a direct share, based on population, of the total Proposition A and Proposition C sales tax revenues. Known as “local return”, these funds must be used to support transit needs or other transportation related projects including paratransit and fixed route service, street and road maintenance (Proposition C only) on streets heavily used by transit, and other transit-related improvements. Transportation Improvement Program Call for Projects

The Transportation Improvement Program (TIP) Call for Projects (CFP) is a biennial process for allocating selected local, state, and federal transportation funds to cities in Los Angeles County, Los Angeles County, municipal transit operators, joint power authorities, and other public agencies. After Metro establishes funding estimates, eligible organizations submit project applications for review.

Metro staff, based on a scoring system adopted by the Board of Directors, evaluates the merits of each submittal and develops a priority ranking. The Board of Directors reviews the staff recommendations and adopts a multi-year funding program. After adoption by the Board of Directors, Metro programs funding based on project cash flow plans and secures written agreements with successful project sponsors.


FY06 Budget


TDA Article 3 and Article 8

TDA Article 3 funds are allocated to all cities and the unincorporated areas of Los Angeles County based on population. TDA Article 3 funds may be used for pedestrian and bicycle facilities, including retrofitting facilities, to comply with the Americans with Disabilities Act (ADA). TDA Article 8 funds may be used for transit and paratransit.

If Metro finds that all transit needs in the jurisdiction have been met, funds may be used for the development, construction, and maintenance of local streets and roads. Eligible claimants for TDA Article 8 funds include the cities of Avalon, Lancaster, Palmdale, and Santa Clarita, and the unincorporated areas of Los Angeles County.

Other Local Programs

Metro provides $1.1 million in funding for Support for Homeless Re-Entry (SHORE) and the General Relief (GR) Token Program to provide tokens for transportation for homeless/indigent persons. Regional Grantee

Metro is acting as the grantee for federal funds on a pass-through basis. In FY06, the budgeted amount for pass-through grants is $13.8 million.

In FY06, participants include Baldwin Park, Bellflower, Burbank, Cerritos, Compton, El Segundo, Glendale, Monterey Park, Palmdale, Palos Verdes Transit, Pasadena, Playa Vista, Redondo Beach, San Fernando, Sierra Madre, South Pasadena, and West Covina, as well as the Los Angeles Neighborhood Initiative (LANI).

EZ Transit Pass Program The EZ Transit Pass Program is a regional pass program that allows patrons to transfer among various transit providers. Currently, twenty operators participate in the program. The program provides seamless travel for patrons who use the EZ Pass to access different transit systems.

Metro administers the program by collecting all revenues ($12.3 million in FY06) and distributing them to the participating operators according to a formula approved by the LACMTA Board of Directors.

Regional Rail Program

Metrolink is a regional passenger rail system which links downtown Los Angeles to the four surrounding counties and the Antelope Valley. Average passenger trip length is 37 miles. Construction, operation, and maintenance of the Metrolink fleet, right-of-way, and facilities are performed by the Southern California Regional Rail Authority (SCRRA), a Joint Powers Authority (JPA). Metro and the four county members of the JPA provide funding, in combination with passenger fares, state and federal grants, and other operating revenue.


FY06 Budget


General Fund

Fund Narrative

The General Fund (GF) includes activities associated with government that are not legally or otherwise required to be accounted for in another fund.

The GF mainly provides property management services. The GF is a major fund as defined by the Governmental Accounting Standards Board Statement No. 34.

Revenues

The primary sources of revenue to the General Fund are rental and lease revenue on owned property, revenue generated from property management functions provided by the Real Estate Department, and interest income. Revenues collected from non-recurring sources also are included in the General Fund, as are revenues from some Federal, State, and local grants.

Expenditures

The GF incurs expenditures associated with property management activities that are not directly attributable to transit operations or construction efforts. It also reports Grand Central Market debt service and pass-through grant funded activities.

Statement of Revenues, Expenditures and Changes in Fund Balances

For the Years Ending June 30, 2004, 2005, and 2006

(Amount in millions)

General Fund FY04

Actual FY05

Amended FY06

Budget

1 Revenue:

2 Intergovernmental grants 4.3$ 0.7$ 6.9$

3 Investment income 1.6 3.6 2.2

4 Lease and rental 11.0 10.5 10.7

5 Proceeds on lease/leaseback to service 8.1 - -

6 Licenses and fines 0.5 0.5 0.5

7 Other 12.1 2.1 2.1

8 Total Revenues 37.6 17.4 22.3

9

10 Expenditures:

11 Subsidies 27.9 46.6 50.0

12 Services - 0.6 5.7

13 Debt and interest expenditures 0.6 0.7 0.7

14 Bond principal & commercial paper retirement 0.8 1.5 1.6


16 Total expenditures 36.3 56.9 64.4

17

18 Net change in fund balance 1.3 (39.5) (42.1)

19

20 Fund balances - beginning of year 141.5 142.8 103.3

21





FY06 Budget


FY06 Budget



V. Capital Program


FY06 Budget

Capital Program Introduction • V-1

INTRODUCTION

The Capital Program (CP) is a financial plan of proposed capital projects, their costs, and schedules. The CP is designed to meet Metro’s infrastructure needs in a responsive and efficient manner. It incorporates the current and future needs of Metro and is updated annually. Appropriations for the capital budget are approved on a life-of-project basis and thus do not lapse at the end of the fiscal year.

The CP provides for the acquisition, construction, reconstruction, purchase of initial fixtures and equipment, renovation, rehabilitation, and replacement of facilities with a life expectancy of at least one year and any related costs for land acquisitions, land improvements, design, feasibility studies, engineering studies and engineering. It includes projects which are, or will become, the property of Metro.

Capital projects are planned and executed in phases. The project development phase identifies project requirements and defines the project work scope. This includes preliminary design studies, permitting requirements, data collection, public involvement, legal and technical documentation, cost estimates, and assessment of alternatives.

The design phase includes professional consultant activities, legal and technical documentation, environmental clearance, constructibility review, data collection,

advertising, assessment of alternatives related to project design, construction management services, and bid reviews.

The property acquisition phase includes the purchase of land, easements, and rights-of-way. This also includes negotiating the purchase price, surveys, appraisals, environmental audits, permitting, legal costs, maps, charts, and other costs.

The construction phase includes project construction contracts, professional and technical assistance, advertising, legal and technical documentation, inspection, testing, and permitting.

Metro’s 101 capital projects for FY06 are grouped in one of the following eleven elements: Bus Acquisition, Bus Facilities Improvements, Bus Maintenance, Rail Facilities Maintenance, Rail Vehicle Improvements, Wayside Systems, IT/Communications, Non-Revenue Vehicles, Warehouse, Other Capital, and Major Construction.

Funding

The CP is funded primarily with federal, state and local grants. Additionally, Metro finances a portion of the capital projects with debt and short term financing.


FY06 Budget

V-2 • Major Construction Projects Capital Program

MAJOR CONSTRUCTION PROJECTS

The FY06 Construction Program includes funds for engineering and construction of the Metro Gold Line Eastside Extension, completion of construction of the Orange Line, construction of the Canoga Station Park and Ride facility, and completion of Mid-City/Exposition Light Rail Transit preliminary engineering, design, and real estate acquisition.

Metro Gold Line Eastside Extension

This project will connect East Los Angeles with downtown Los Angeles. The corridor will extend from Union Station to the intersection of Beverly and Atlantic Boulevards. The light rail line project is 6 miles and will operate at-grade for 4.3 miles and through tunnels in Boyle Heights for 1.7 miles.

The FY06 project includes tunnel and station excavation, installation of station trackwork and systems, utility relocation, real estate acquisition, and final design work. Revenue operation is projected to begin in FY10.

Orange Line

The Orange Line is an exclusive 14-mile, at-grade busway from the Metro Red Line North Hollywood station to Warner Center via the Burbank/Chandler right-of-way. The full busway project consists of a 26-

foot wide busway, a bikeway, and a landscaped median. It parallels several major streets and has thirteen stations spaced approximately one mile apart.

Total travel time for the full length of the corridor will be approximately 40 minutes. Park and Ride facilities at five stations will provide approximately 3,200 parking spaces; there is existing parking at the North Hollywood Metro Red Line Station.

The FY06 project includes completion of the busway and bikeway, systems installation and testing acceptance, landscaping, and a majority of contract close out activities.

Canoga Station Park & Ride

This project includes funds for starting and substantially completing the Canoga Station Park and Ride, surfacing park and ride spaces, and extending the Orange Line by one-third mile.

Mid-City/Exposition Light Rail Transit Project

Activities scheduled for FY06 include completion of the preliminary engineering design, third party utility relocations, and real estate acquisitions.


FY06 Budget

Capital Program Infrastructure Improvement and Acquisition Capital Projects • V-3

INFRASTRUCTURE IMPROVEMENT AND ACQUISITION CAPITAL PROJECTS The infrastructure improvement and acquisition projects are sorted by the following elements: Bus Acquisition, Bus Facilities Improvements, Bus Maintenance, Rail Facilities Improvements, Rail Vehicle Maintenance, Wayside Systems, IT/Communications, Non-Revenue Vehicles, Warehouse Projects, and Other Capital Projects.

Bus Acquisitions

In FY06, Metro will receive portions of the 100 45-foot high-capacity bus order. Other FY06 expenditures in this element are primarily for bus system improvements such as the Universal Fare System (UFS) and progress payments for the procurement of 178 articulated buses.

Bus Facilities Improvements

FY06 Bus Facilities Improvements projects include construction work at bus divisions to replace and refurbish equipment and facilities, expansion of buildings and facilities, and storage tank replacement and soil remediation.

Bus Maintenance

The FY06 budget includes funding to rebuild CNG buses which have reached their mid-life.

Rail Facilities Improvements

FY06 Rail Facilities Improvements projects cover facility expansion, safety improvements, radio system upgrades, and support equipment.

Rail Vehicle Maintenance

The FY06 Rail Vehicle Maintenance program includes retrofitting brake components on Breda rail cars and upgrading the P2000 light rail vehicle signaling package.

Wayside Systems

Wayside Systems projects for FY06 include funds for upgrading of stations and operating facilities, safety improvements, and maintenance and refurbishment of traction power, signals, facilities and track.

IT/Communications

IT/Communications projects for FY06 support development of communications and information systems and replacement of obsolete computer equipment. Specific efforts include replacement of telecommunications transmission equipment, replacement of work stations, and technology upgrades.

Non-Revenue Vehicles

The FY06 Non-Revenue Vehicles element includes purchase of replacement and expansion vehicles to support bus and rail operations and general Metro functions.


FY06 Budget

V-4 • Infrastructure Improvement and Acquisition Capital Projects Capital Program

Warehouse Projects

Warehouse projects for FY06 include upgrading materials handling systems, constructing storage facilities, and acquiring equipment for the central warehouse.

Other Capital Projects

Other Capital projects for FY06 include completion of the Homeland Security project and Gateway headquarters improvements.

For a complete list of capital projects, please see pages V-5 through 8.

CAPITAL PROGRAM PROJECT LIST

(Amounts in thousands) Expected FY06 Life

Expenditures and of

Project Title CP# Through FY05 Future Project New

1 Bus Acquisition

2 # Universal Fare Collection System 200225 74,648$ 18,959$ 93,607$

3 Regional Service Center and Clearinghouse 200351 2,314 7,686 10,000

4 ATMS Radios for Contractor Buses 201002 - 2,000 2,000 *5 100 QTY 45' NABI Compo Buses 201004 38,023 10,207 48,230

6 178 CNG Articulated Bus Purchase Base Order 201005 34,200 92,574 126,774

7 Bus Acquisition Total 149,184 131,427 280,611

8

9 Bus Facilities Improvements

10 Replacement Automated Guideway Vehicles 202000 4 1,596 1,600

11 Division 10 Expansion 202001 - 1,000 1,000

12 Digital Video Recorders and Division Equipment 202003 205 826 1,031

13 In-Ground Bus Hoist Replacement 202007 4,784 3,497 8,281

14 Upgrade Underground Storage Tanks and Remediate Soil 202008 5,406 12 5,418

15 Division Lighting Program 202009 365 833 1,198

16 Permanent Restroom Facilities at Selected Locations 202010 449 1,131 1,580

17 Cal State - L.A. County USC Busway Sta. Enhancement 202011 392 1,860 2,251

18 New Div. 9 Transportation Bldg. and Facilities Improvements 202014 1,438 15,062 16,500

19 Repave LAX & Other Terminals 202015 719 216 935

20 Temple & Beaudry Layover Facility 202016 99 1,593 1,692

21 Division 7 Facility Improvements 202017 2,797 764 3,561

22 Division 2 Maintenance - Maintenance Bldg. Modernization 202018 914 737 1,650

23 LAX Terminal Improvements 202020 85 299 384

24 El Monte Transit Station Enhancements 202021 14 100 114

25 FY06 Underground Storage Tank Replacement 202025 - 2,467 2,467 *26 FY06 Soil Remediation 202030 - 1,506 1,506 *27 FY06 Bus Facility Contingency Projects 202035 - 1,675 1,675 *28 FY06 Bus Division Maintenance Equipment 202040 - 1,075 1,075 *29 FY06 Replace Bus Div. Emerg. Generators 202045 - 339 339 *30 FY06 Bus Division Amenity Improvement Project 202055 - 2,116 2,116 *31 Articulated Bus Facility Modifications 202065 198 6,443 6,641

32 Division 1 Expansion 202066 7,666 3,909 11,574

33 Division 8 & 15 Renewable Solar Energy Generation Project 202067 3,490 10 3,500

34 Division 6 Relocation 202076 544 11,953 12,497

35 Division 4 Expansion & Pavement Project 202092 1,141 1,379 2,521

36 New Division/South Park Relocation 202095 - 1,294 1,294 *37 Install New A/C @ Div. 7 & 18 202164 744 6 750

38 Metro Bus Art Program 202166 271 344 615 39 Wayfinding and Customer Information Improvements at

Major Transfer Centers202167 - 412 412

40 490 Bauchet Street Construction 202168 - 2,874 2,874 *41 Bus Facilities Improvements Total 31,725 67,327 99,052

# Corrected typographical error in life-of-project budget from $93.0 million in pre-adoption book to $93.6 million, which isconsistent with the Board-adopted life-of-project budget.

Capital Program Capital Program Project List • V-5


CAPITAL PROGRAM PROJECT LIST (cont.)


Expenditures and of


42 Bus Maintenance

43 FY06 Bus Midlife Program 203003 -$ 12,000$ 12,000$ *44 FY06 Replace Regional Rebuild Center Shop Equipment 203009 - 561 561 *45 Bus Maintenance Total - 12,561 12,561

46

47 IT/Communications

48 Computer Kiosks Bus and Rail Facilities. 207006 367 414 781

49 HASTUS Scheduling Software System Upgrade 207009 239 321 560

50 ITS Telecommunications Transmission Replacement Proj. 207010 - 9,541 9,541

51 FY06 Workstation and Network Technology Refresh Prog. 207022 - 1,856 1,856 *52 FY06 Maintenance and Materiel Mgmt. System Upgrades 207036 - 1,006 1,006 *53 Radio Communications Upgrades for MTA Security 207047 - 35 35 *54 Customer Center Security & Information Enhancements 207048 - 342 342 *55 IT/Communications Total 605 13,515 14,121

56

57 Non-Revenue Vehicles

58 Bus System Support Replacement Non-Revenue Vehicles 208002 3,306 2,660 5,966

59 Bus System Expansion Non Revenue Vehicles 208003 177 50 227

60 Rail Support Replacement Non Revenue Vehicles 208004 1,391 450 1,841

61 FY06 Bus System Support Replacement Non-Rev Vehicles 208005 - 1,242 1,242 *62 FY06 Bus System Expansion Non Revenue Vehicles 208010 - 1,085 1,085 *63 Non-Revenue Vehicles Total 4,874 5,487 10,361

64

65 Other Capital Projects

66 Homeland Security Project 200018 1,436 1,744 3,179

67 Gateway Headquarters Improvement Projects 210008 2,535 299 2,834

68 Cooling Tower Vacuum 210025 5 41 46

69 Other Capital Projects Total 3,976 2,083 6,059

70

71 Rail Facilities Improvements

72 Between-Car Platform Barriers - Metro Rail 204002 509 2,448 2,957

73 Division 20 Improvements 204003 948 2 950

74 ROC Reconfiguration 204004 1,360 4,027 5,387

75 MGL Elevator and Escalator Sumps and Clarifiers 204005 1,132 1 1,133

76 Division 22 Improvements 204008 1,313 2,098 3,411


78 MBL Long Beach Transit Mall Station Redesign 204010 111 1,415 1,526

79 Rail Systemwide Safety Improvements 204012 192 1,881 2,073

80 Vermont/Santa Monica Sta. Underground Water Mitigation 204016 10 1,273 1,283


82 Rail Facilities Improvements Continued Next Page

V-6 • Capital Program Project List Capital Program



Expenditures and of


83 Rail Facilities Improvements

84 FY06 Rail Facility Maintenance Contingency Projects 204029 -$ 3,299$ 3,299$ *85 MRL Seg 2 & 3 Station PLC and EMP Upgrade 204035 - 1,126 1,126 *86 Division 22 Improvements Phase II 204037 - 4,895 4,895 *87 MRL Tactile Pad and Strip Installation 204041 201 249 450

88 Completion of Metro Blue Line Art Program 204042 377 557 934

89 Completion of Metro Green Line Art Program 204043 4 166 170

90 Rail Facilities Improvements Total 14,467 37,023 51,490

91

92 Rail Vehicle Maintenance

93 Breda Rail Car Retrofit 206004 66 4,245 4,311

94 P2000 Vehicle Signaling Package Upgrade 206005 - 3,364 3,364

95 Rail Vehicle Maintenance Total 66 7,609 7,675

96

97 Warehouse

98 PGL Midway Warehouse - Equipment and Storage 209003 867 900 1,767

99 Metro Red Line Storage Building 209004 168 660 828

100 Automate Bulk Storage Area 209007 - 1,029 1,029

101 Purchase EZ Tilter 209010 7 185 192

102 New Pallet Racking for Bus Divisions 209011 7 178 185

103 Install Dock Leveler Stationery Storeroom 209012 2 100 102

104 New Expansion Pallet Racking at Central Warehouse 209013 1 34 35

105 Equipment Safety Modification for Central Warehouse 209014 1 55 56

106 Install Shipping Awning 209015 - 250 250

107 Warehouse Total 1,054 3,390 4,445

108

109 Wayside Systems

110 SCADA Equipment Replacement 205002 8,004 2,559 10,563

111 Rail Security Improvements 205004 164 6,305 6,469

112 Rail Communications Systems Upgrade 205005 742 1,590 2,332

113 MBL Grade Crossing Improvements 205006 2,246 1,876 4,122

114 Wayside Systems Tools and Equipment 205007 284 74 358

115 Crossing Gate Equipment Replacement 205009 677 561 1,238

116 MBL Four Quadrant Gate Program Expansion 205012 900 4,755 5,655

117 Light Rail Train Tracking Improvements 205014 105 851 956

118 Seg.-1 Remote Terminal Unit (RTU) Upgrade 205017 377 2,268 2,645

119 FY06 Wayside Systems Tools and Equipment 205019 - 573 573 *120 FY06 Wayside Systems Contingency Projects 205029 - 3,334 3,334 *121 Four PGL Traction Power Substations 205034 3,156 5,545 8,701

122 MRL Signal System Upgrade 205037 247 491 738

123 Wayside Systems Total 16,903 30,782 47,684

124 Subtotal for Capital Program 222,853 311,206 534,059



CAPITAL PROGRAM PROJECT LIST (cont.)


Expenditures and of


125 Major Construction

126 Orange Line Pre-Revenue Operation 800026 -$ 1,152$ 1,152$ *127 Metro Gold Line Eastside Extension 800088 317,640 581,173 898,813

128 Orange Line 800112 232,887 80,113 313,000

129 Mid-City/Exposition Light Rail Corridor 800113 18,300 43,750 62,050

130 SFV East-West Bikeway Project 800114 7,861 2,777 10,638

131 Canoga Station Park and Ride Project 800117 8,568 17,432 26,000 *132 Light Rail Vehicle Fleet Enhancement 800151 63,477 89,442 152,919

133 MGL Eastside Extension Enhancements 800288 450 17,550 18,000 *134 Major Construction Total 649,183 833,389 1,482,572

135 Capital Program Grand Total 872,036$ 1,144,595$ 2,016,632$



Capital Programs - Excluding Major Construction

Element (in 000 $'s)Total Life of

Project Budget

1 Bus Acquisition 279,956$

2 Bus Facilities Improvements 99,052

3 Bus Maintenance 12,561

4 Rail Facilities Improvements 51,490

5 Rail Vehicle Maintenance 7,675

6 Wayside Systems 47,684

7 Other Projects 34,986

8 Capital Program Total 533,404$

Major Construction

Project (in 000 $'s)Total Life of

Project Budget12 Gold Line Eastside Extension 898,813$

13 Orange Line 313,000

14 Mid-City/Exposition Light Rail Corridor

62,050

15 Light Rail Vehicle Fleet Enhancement

152,919

16 Other Projects 55,790

17 Major Construction Total 1,482,572$



Light Rail Vehicle Fleet

Enhance-ment10%

Other Projects

4%

Mid-City/Exposi-

tion Light Rail Corridor

4%

Gold Line Eastside

Extension61%

Orange Line21%

Bus Acquisition

52%


19%

Other Projects7%

Rail Vehicle Maintenance

1%

Wayside Systems

9%

Bus Maintenance

2%


10%


FY06 Budget


Map of route for Metro Gold Line Eastside Extension

Project rendering of new light rail vehicles -- delivery of first two cars is scheduled for June 2005


FY06 Budget


Gold Line Eastside Extension – Project Rendering: Line Section at 1st Street Bridge

Gold Line Eastside Extension – Project Rendering: Soto Station Aerial View


FY06 Budget


Gold Line Eastside Extension -- Repair of 1st Street after relocation of 12” water line

Gold Line Eastside Extension -- Placement of 18” storm drainage line at 1st and Boyle Avenue


FY06 Budget


Orange Line – Project Rendering: Typical Station

Low floor CNG-powered articulated vehicle for initial use on Orange Line

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FY06 Budget


Orange Line -- Forming Platform of Laurel Canyon Station

Orange Line -- Sound wall north of Victory Blvd.


FY06 Budget

Capital Program Capital Project Operating Impact Assessment • V-15

CAPITAL PROJECT OPERATING IMPACT ASSESSMENT

Capital projects in the FY06-10 capital program with a Life of Project (LOP) cost in excess of $5.0 million have been reviewed to determine the cost impact on Metro operations. The operating cost impact assessment considers costs and/or savings related to ongoing operations, power requirements, maintenance labor and materials, training, and security.

Projects which replace existing facilities or equipment often do not change the cost of operations over the life of the asset. Functionally equivalent replacements generally require the same levels of energy to operate equipment, maintenance activities, training, and security. In those instances where a replacement asset involves a higher or lower cost to operate than the asset being replaced, the cost or saving is identified.

The cost of operations of major construction projects such as bus corridors and rail corridors is based on service levels when complete. Once in full operation such projects will be operated at a specific level of revenue service hours. The cost of operation is based on the cost per hour times the annual revenue service hours to be operated. In instances where a new project duplicates existing service, the duplicated service has been excluded from the operating cost impact.

Some projects must be monitored after implementation to determine annual operating cost impacts. In these instances future budgets will contain operating cost impacts based on data for a full fiscal year of operations.

For a list of capital projects with potential operating cost impacts, please see pages V-16 and 17.

FY06-10 Capital Projects with Potential Operating Cost Impacts

Element CP# Title Description of cost impacts or savingsAmount of cost or (saving)

Bus Acquisition 200225 Universal Fare Collection System Contracted maintenance as part of original contract FY06 - $4,500,000FY07 - $5,200,000FY08 - $5,600,000FY09 - $ 722,000

Bus Acquisition 200351 Regional Service Center and Clearinghouse

Operating cost estimates will be developed during project specification.

To Be Determined


202066 Division 1 Expansion Cost of operating an expanded division will likely be offset by a reduction in deadhead mileage and other operational savings

$0


202007 In-Ground Bus Hoist Replacement No additional costs will be incurred. Savings will be realized based on significantly reduced consumption of hydraulic fluid.

$0


202014 Div. 9 Transportation Building and Facility Improvements

No additional costs will be incurred. Savings may be realized due to decreased building maintenance costs and improved efficiency.

($100,000)


202065 Articulated Bus Facility Modifications No additional costs will be incurred by this project. $0

Bus Maintenance

203003 FY06 Bus Midlife Program The Bus Mid-Life program is a proactive plan to replace major components before they reach failure mileage. The consolidated replacement and repair program minimizes out of service time by avoiding reactive major component replacement due to catastrophic failure. The program contributes to lower maintenance costs by minimizing field repairs and lost productivity.

Savings To Be Determined

IT/Communications

7000027 ITS Telecommunications Transmission Upgrade Project

Savings of about $1,000,000 per year in telephone costs areanticipated. Other savings that cannot be empirically determined include reduced labor for maintenance and repair parts for old equipment.

($1,000,000)

Major Construction

800088 Metro Gold Line Eastside Extension Project operating cost is based on the first full year of operation following completion.

$13,400,000

Major Construction

800112 Orange Line Project operating cost is based on the first full year of operation following completion.

$11,000,000

Major Construction

800113 Mid-City/Exposition Light Rail Corridor Project operating cost is based on the first full year of operation following completion.

$25,000,000

Major Construction

800114 SFV East-West Bikeway Project Operating costs will be determined following project completion

Included in Orange Lineproject operating costs

Major Construction

800117 Canoga Station Park and Ride Facility The operating impact of this project will be included in theOrange Line project (800112)

Included in Orange Lineproject operating costs

Major Construction

800151 LRV Fleet Enhancement Project These rail cars will be assigned to the Metro Gold Line andwill replace existing vehicles which will be reallocated to the rail lines as maintenance spares

Included in Eastside Extension and Gold Line operating costs

V-16 • Capital Project Operating Impact Assessment Capital Program


Element CP# Title Description of cost impacts or savingsAmount of cost or (saving)

Major Construction

800288 Metro Gold Line Eastside Extension Enhancements

The operating impact of this project will be included in the Metro Gold Line Eastside Extension project (800088)

Included in Eastside Extension operating costs

Non-Revenue Vehicles

202008 Bus System Replacement Non Revenue Vehicles

The additional annual cost is estimated to be $10,904. This includes $8,176 for increased fuel usage and $2,728 for additional parts and labor.

$10,904


204004 ROC Reconfiguration Anticipate additional maintenance costs due to added equipment. Equipment enhancements and facility improvements will have a positive effect on staff productivity and safety. This has not been presently quantified and valued.

Anticipate annual savings but cannot be valued until project completion.

Wayside Systems

205004 Rail Security Improvements Anticipate additional maintenance costs due to added equipment. CCTV cameras and related equipment is being upgraded and replaced. Improved security for the public and system operation has not been quantified.

Anticipate no annual savings but additional annual costs to be valued at project completion.


204009 Division 11 Improvements Future cost savings as the fleet ages and the fleet size increases are not known at this time. Actual savings can only be determined over time. When the 15 P2020 vehicles were transferred for the MGL to Division 11 our maintenance was increased by 27%. The Division 11 Expansion will provide adequate space to maintain the fleet to its required level.


Wayside Systems

205002 SCADA Equipment Replacement There is no impact as a result of the operation of the new capital assets as they are a replacement/upgrade to existing assets. Operational considerations of these assets are already factored into the applicable department FTE and acquisition budgets. Training costs will be incurred in the Rail Communications and Wayside Systems Engineering departments for operations and maintenance training of the system. Parts and materials costs will have been fully encumbered in the FY '05 budget. There will be no impact to inventory costs since critical spares are provided in the contract. Maintenance of spares inventory will have a lower cost due to the availability of standard off-the-shelf parts from multiple vendors.


Wayside Systems

205012 MBL Four Quadrant Gate Program Expansion

Increased maintenance costs anticipated due to additional crossing gates. Unquantifiable amount of cost avoidance since this is a public safety improvement.

Operating costs to be determined when project completed and cost data collected.

Wayside Systems

205034 Four PGL Traction Power Substations Savings anticipated due to operational efficiencies created by the enhancements. Additional substations will ensure the capability of the system to increase service schedule headways.

Operating savings to be determined during project development

Capital Program Capital Project Operating Impact Assessment • V-17



FY06 Budget

V-18 • Capital Project Operating Impact Assessment Capital Program


VI. Strategic Business Units


FY06 Budget

Strategic Business Units Metro Summary Description • VI-1

METRO SUMMARY DESCRIPTION

Metro is the principal planner, builder, and operator of public transportation services and infrastructure improvements in Los Angeles County. Metro is organized into seven Strategic Business Units: Metro Operations, Countywide Planning & Development, Construction Project Management, Communications, Support Services, Chief of Staff, and Board of Directors.

Metro Operations manages all aspects of bus and rail service. Countywide Planning and Development is responsible for programming and administering federal, state, and local transportation funds, preparing the Transportation Improvement Plan (TIP), and planning and coordinating regional transportation services and infrastructure improvements throughout Los Angeles County. Construction Project Management is responsible for providing the engineering and construction oversight for major

construction projects and Metro facilities improvements. Communications is responsible for the strategic evaluation, development, and implementation of agency-wide marketing and communications programs. Support Services, which is comprised of Accounting, Treasury, Management and Budget, Information Technology Services, Management Audit Services, Procurement and Material Management, and Risk Management, provides essential financial and administrative support to the entire organization. The Chief of Staff coordinates and oversees key programs and provides support to the CEO. The Board of Directors establishes Metro policies and approves appropriations. The Board also manages or supervises Board meetings and Board committee meetings, ethics and lobby registration programs, the inspector general, and legal counsel.

Summary of FY06 Budgeted FTEs by Department

FY04 FY05 FY06 Change Budget Amended Budget from FY05

1

2 Metro Rail 1,104 1,090 1,099 9 3 San Fernando Valley Service Sector 987 1,014 1,056 42 4 San Gabriel Valley Service Sector 951 972 975 3 5 Gateway Cities Service Sector 834 975 1,058 83 6 South Bay Service Sector 1,291 1,220 1,173 (47) 7 Westside/Central Service Sector 1,359 1,367 1,374 7 8 Contracted Bus Services 6 5 4 (1) 9 Bus Operations Control 73 73 76 3

10 Central Maintenance 332 323 328 5 11 Vehicle and Systems Technology 39 32 18 (14) 12 Service Planning & Development 90 85 80 (5) 13 Manpower 23 21 17 (4) 14 Operations Central Instruction 125 96 95 (1) 15 Facilities 195 192 172 (20) 16 Operations Security 99 97 97 (0) 17 Safety 15 14 17 3 18 Freeway Services 9 8 9 1 19 Executive Office, Metro Operations 8 7 7 - 20 7,540 7,591 7,654 63 21

22

23 Transportation Dev & Implementation 62 52 48 (4) 24 Programming & Policy Analysis 35 31 30 (1) 25 Long Range Planning & Coordination 29 23 22 (1) 26 Executive Office, Reg Transp Plan & Dev 4 4 4 - 27 130 110 104 (6) 28

29

30 Construction 34 26 21 (5) 31 Program Management 38 33 27 (6) 32 Engineering 28 17 14 (3) 33 Quality Management 14 11 9 (2) 34 Construction Safety 7 5 4 (1) 35 Executive Office, Construction Project Mgmt 14 14 13 (1) 36 135 106 88 (18) 37

38

39 Creative Services 18 14 14 -40 Customer Communications 33 26 30 4 41 Customer Relations 118 102 108 6 42 Fare Policy & Programs 43 44 23 (21) 43 Public Relations 15 12 10 (2) 44 Executive Office, Communications 10 11 8 (3) 45 237 209 193 (16)

VI-2 • Summary of FY06 Budgeted FTEs by Department Strategic Business Units


Communications

Communications Total

Construction Project Management Total

Metro Operations

Construction Project Management

Metro Operations Total

Countywide Planning & Development Total

Countywide Planning & Development

FY04 FY05 FY06 Change Budget Amended Budget from FY05

46 Support Services47 Accounting 83 82 78 (4) 48 Treasury 65 65 62 (3) 49 Office of Management & Budget 22 22 20 (2) 50 Information Technology Services 154 142 132 (10) 51 Management Audit Services 55 38 30 (8) 52 Procurement & Material Management 258 237 226 (11) 53 Risk Management 40 47 47 - 54 Office of the CFO 2 2 2 - 55 679 635 597 (38) 56

57

58 Administration 173 165 156 (9) 59 Diversity & Economic Opportunity 25 25 22 (3) 60 Community Relations 19 19 16 (3) 61 Labor/Employee Relations 22 21 19 (2) 62 Government & Board Relations 11 10 9 (1) 63 Policy, Research & Library Services 6 5 5 - 64 Executive Office, Chief of Staff 12 9 8 (1) 65 268 254 235 (19) 66

67

68 Inspector General 32 24 23 (1) 69 Office of Board Secretary 12 12 12 - 70 Ethics Office 6 6 6 -71 County Counsel 5 5 5 - 72 Chief Executive Office 1 1 1 - 73 56 48 47 (1) 7475 9,045 8,953 8,918 (35)

Strategic Business Units Summary of FY06 Budgeted FTEs by Department • VI-3


FY06 Budget

Agency Total

Chief of Staff Total

Board of Directors

Board of Directors Total

Support Services Total

Chief of Staff

Metro Summary Expenditures Budget

FY04 FY05 FY06FTEs Budget Amended Budget

1 Metro Operations 7,540 7,591 7,654 2 Countywide Planning & Development 130 110 104 3 Construction Project Management 135 106 88 4 Communications 237 209 193 5 Support Services 679 635 597 6 Chief of Staff 268 254 235 7 Board of Directors 56 48 47 8 Agency Total 9,045 8,953 8,918

Expenditures FY04 FY05 FY06(Amounts in thousands) Actual Amended Budget

9 Metro Operations 965,869$ 1,270,628$ 1,245,153$ 10 Countywide Planning & Development 655,119 845,977 772,532 11 Construction Project Management 162,731 387,358 340,664 12 Communications 30,728 31,501 28,724 13 Support Services 392,667 418,422 407,995 14 Chief of Staff 42,776 42,257 39,999 15 Board of Directors 18,079 16,127 24,240 16 Agency Total 2,267,968$ 3,012,269$ 2,859,307$ *

Expenditure Types FY04 FY05 FY06(Amounts in thousands) Actual Amended Budget

17 Wages & Benefits 688,593$ 748,960$ 774,147$ 18 Services 179,920 259,154 259,942 19 Purchased Transportation 30,912 26,422 32,442 20 Fuel, Lubricants & Propulsion Power 50,252 64,195 70,539 21 Materials & Supplies 72,566 84,864 83,648 22 Casualty & Liability 49,801 50,112 47,856 23 Other Support 43,465 48,933 47,168 24 Acquisitions 236,095 609,585 499,963 25 Equipment 1,922 5,237 7,628 26 Subsidies 628,701 814,849 742,262 27 Debt 285,741 299,959 293,711 28 Agency Total 2,267,968$ 3,012,269$ 2,859,307$ *

* Includes principal liability payments and Benefit Assessment District debt payments. Excludes debt refunding and defeased lease. Proprietary fund includes principal payments of $16.3 million in FY04, $12.0 million in FY05, and $12.0 million for FY06.

VI-4 • Metro Summary Expenditures Budget Strategic Business Units



FY06 Budget

Strategic Business Units Metro Operations • VI-5

METRO OPERATIONS

Organization Chart

Introduction

Metro Operations is responsible for providing more than eight million hours of bus and rail transit service that support over 440 million boardings each year. Metro Operations also administers Paratransit Service, the Metro Freeway Service Patrol, and the Service Authority for Freeway Emergencies.

Metro Operations is organized into six service sectors (five bus and one rail) and seven major support units which are committed to provide safe, courteous, professional, dependable, clean, and efficient transit services to customers.

Metro Bus Service Sectors

The five Metro Bus service sectors include the San Fernando Valley, San Gabriel Valley, Gateway Cities, South Bay, and Westside/Central. Each service sector is responsible for all facets of bus operations: transportation, maintenance, service

planning and scheduling, and communications.

South Bay Service Sector

The South Bay Service Sector (SB) is responsible for providing transit service to the following geographic areas:

Norwalk (East) to LAX and the Beach Cities (West), Hollywood (North) to San Pedro (South) and Downtown Los Angeles. South Bay Sector’s East/West Service connects with the Blue Line, and the North/South service connects with the Green Line. Additional service provided includes the Hollywood Park Race Track. The Sector consists of three, main functional sections: South Bay Service Sector Office, Arthur Winston Division, and Carson Division.

The South Bay Service Sector Office, located in Torrance, works in conjunction with the Governance Council to deliver quality transportation to the community and provide support to the operating divisions.

OperationsAdministration

Metro Rail &Control Centers

ContractServices

CentralMaintenance

South BayService Sector

Westside/CentralService Sector

San Fernando ValleyService Sector

San Gabriel ValleyService Sector

Gateway CitiesService Sector

Metro BusService Sectors

Safety & Training

Facilities Vehicle & NewTechnology Systems

Transit Security

Deputy Chief Executive Officer&

Chief Operating OfficerMETRO Operations


FY06 Budget

VI-6 • Metro Operations Strategic Business Units

The Arthur Winston Division, located in South Los Angeles, operates 243 CNG and diesel buses, providing 649,941 revenue service hours. The Carson Division operates 274 CNG and diesel vehicles, providing 810,290 revenue service hours.

Westside/Central Service Sector

Operating boundaries for the sector extend to the west as far as Malibu and to the east past downtown Los Angeles. The Westside/Central (WC) sector is unique because it provides service to some of the most heavily traveled lines and traverses some of the most congested streets in the Los Angeles area.

The sector includes three operating divisions. Division 6, located in Venice, operates 78 buses, providing 128,576 revenue service hours. Division 10, located in northeast Los Angeles, operates 287 buses, providing 852,970 revenue service hours. Division 7, located in West Hollywood, operates 258 buses providing 740,494 revenue service hours.

San Fernando Valley Service Sector

The San Fernando Valley (SFV) Service Sector provides transportation services to the cities of Agoura Hills, Calabasas, Hidden Hills, La Canada/Flintridge, Burbank, Glendale, and San Fernando, and to numerous San Fernando Valley communities within the City of Los Angeles.

The sector office, located in Chatsworth, provides administrative support for its two operating divisions to ensure the delivery of quality transportation to the community. The operating divisions are located in Sun Valley in the east San

Fernando Valley and Chatsworth in the west San Fernando Valley.

Both divisions are responsible for a fleet of 472 buses and operating 549,716 revenue service hours at Division 8 in Chatsworth and 748,746 revenue service hours at Division 15 in Sunland.

San Gabriel Valley Service Sector

The San Gabriel Valley (SGV) Service Sector is the primary provider of bus transit service to the western San Gabriel Valley, East Los Angeles, and North Los Angeles areas. Additionally, SGV provides regional service to the east San Gabriel Valley. Cities served within the west San Gabriel Valley include Alhambra, Arcadia, El Monte, Monrovia, Montebello, Monterey Park, Pasadena, Rosemead, San Gabriel, San Marino, Sierra Madre, South El Monte, South Pasadena, and Temple City.

SGV operates two divisions from facilities located in El Monte and Cypress Park. The SGV sector offices are located in El Monte adjacent to the operating facility.

For FY06 SGV will operate 634,426 revenue service hours of bus service at Division 3 and 646,587 revenue service hours at Division 9 with 419 buses traveling about 18.4 million miles.

Gateway Cities Service Sector

The Gateway Cities (GC) Service Sector is comprised of 26 cities and unincorporated areas of southeast Los Angeles County.

Cities included in the Gateway Cities sector are Artesia, Avalon, Bell, Bellflower, Bell Gardens, Cerritos, Commerce,


FY06 Budget


Compton, Cudahy, Downey, Hawaiian Gardens, Huntington Park, La Habra Heights, Lakewood, La Mirada, Long Beach, Lynwood, Maywood, Norwalk, Paramount, Pico Rivera, Santa Fe Springs, Signal Hill, South Gate, Vernon, and Whittier.

The Gateway Cities sector offices are located in Downey, which provide planning and administrative support to two operating divisions, both located in downtown Los Angeles. The two divisions have a total of over 1,100 employees and operate 471 buses with 798,146 revenue service hours at Division 1 and 556,376 revenue service hours at Division 2.

Metro Rail

Metro Rail operates and maintains four rail lines, including 121 light and 104 heavy rail vehicles and 65 rail stations. Rail operation includes Transportation (operations, supervision, train control, scheduling, and instruction), Fleet Services (vehicle maintenance, engineering and design, instruction, warranty and quality assurance), and Wayside Systems (track, power, stations, signals, communication and facility maintenance). Metro Rail is also responsible for the Bus Control Center.

Contract Services

The Transportation Contract Services Department is responsible for three main programs; Purchased Transportation, Motorist Services, and Paratransit Services.

Purchased Transportation contracts with privately-owned bus companies to provide bus service on more than 20 bus lines in the north, south and east regions of

Metro’s service area. The FY06 boardings under these purchased transportation contracts is projected to be over 11.5 million.

Motorist Services is chiefly responsible for two programs, the Freeway Service Patrol (FSP) and the Service Authority for Freeway Emergencies (SAFE). The FSP’s fleet of roving tow trucks mitigates freeway congestion by promptly assisting disabled motorists and removing debris. The SAFE program supports the network of freeway call boxes used by motorists in need of assistance. For a more detailed description of the Motorist Services programs, please refer to page III-9 of this book.

The Paratransit program, managed by Access Services, Inc. (ASI), provides public transportation services to the elderly and disabled.

For a more detailed description of these contract services, please refer to page III-9 of this book.

Central Maintenance

Central Maintenance provides maintenance support to operating divisions. Departmental functions include the Regional Rebuild Center, Fleet Management and Support Services, and Quality Assurance, which includes direct involvement with the California Highway Patrol and Title 13 of the California Code of Regulations. Quality Assurance is also directly responsible for the management of goods and services contracts, Fare Collection Maintenance, Radio Equipment Maintenance, and Non-Revenue Vehicle/Equipment. Programs cover all facets of bus and equipment maintenance:


FY06 Budget


repairing and rebuilding major components and sub-systems; and controlling and assigning the bus fleet.

Bus Operations Control

Bus Operations Control communicates via two-way radio and telephone with bus operators, field supervisors, field technicians, operating divisions, and emergency response personnel. They monitor and control special bus movements, coordinate, develop and implement all special event services and bus leases, modify bus activity when conditions require outside interaction due to accidents, and detours, monitors ADA compliance and serious customer complaints through undercover rides and field observations and provide failure management as needed to help meet operating goals in the areas of safety, customer relations, and on-time performance.

Service Development

Service Development works out the operating framework for the Metro bus and rail systems and Metro Rapid. The department provides timely and accurate information to operating division and sector staffs that assist in developing efficient, effective, and community-responsive service. Service Development is also responsible for development of the Metro Connections program. Metro Connections is designed to restructure the Metro bus and rail system to improve operational efficiency and expand regional transit ridership.

Operations Central Instruction

Operations Central Instruction (OCI) is responsible for implementing a defensive

driving curriculum for new and veteran bus and rail operators, mechanics, and service attendants for all operating divisions. OCI provides progressive training with a cost-effective approach to strengthen employee skills and meet Metro’s goals in the areas of safety, customer relations, and on-time performance.

Corporate Safety

Corporate Safety manages the Safety’s 1st program that was established to reduce injuries and accidents. The objective of the program is to provide leadership, guidance, technical direction, and resources to protect people, prevent mishaps, achieve regulatory compliance, and control hazards, hazardous occupational exposures, and costs. The department collects, analyzes, and audits accident and injury data on a computerized tracking system called TransitSafe. Injury and accident trends are reviewed with General Managers during monthly Tactical Safety Meetings to quickly identify root causes of problems and improve overall performance.

Facilities

Department functions include Facilities & Property Maintenance, Facilities Engineering, Contract Services, and Stops & Zones. The department’s primary function includes the development, implementation, and management of capital programs for Metro’s facilities. In addition, the department is also responsible for developing and implementing energy efficiency programs that reduce utility costs and improve employee safety. The Department also provides support to all Metro operating divisions by maintaining terminals, stations, bus stops, layover zones,


FY06 Budget


landscape, and inactive right-of-ways. Facilities strives to provide safe, efficient and world-class facilities to enable transit customers and Metro employees to experience an efficient and effective transit system.

Vehicle & New Systems Technology

Vehicle Technology identifies, reviews, tests, and procures high-capacity, alternative fueled, advanced technology buses. It provides operational support and training on operations and maintenance of new vehicles, manages all bus acquisitions, and is responsible for other vehicle technology projects to increase operating efficiency and improve services provided to Metro transit passengers and employees.

New Systems Technology provides project management oversight and is responsible for the acquisition and implementation of new automated systems for Metro Operations. Systems currently being implemented include the Universal Fare System (UFS), and the operating component of the Maintenance and Material Management System (M3).

Law Enforcement & Security

The Department of Law Enforcement and Security provides security and law enforcement services and programs for the protection of Metro’s passengers, employees, properties, revenues, and assets.

Significant Events in FY06

• Open Orange Line bus rapid transit in September 2005.

• Implement high-capacity vehicle plan that includes putting into service first 100 articulated buses.

• Add the Advanced Transportation Management System to purchased transportation vehicles

• Complete the acquisition of equipment for regional clearinghouse for UFS project.

• Implement service for four Metro Rapid lines (Santa Monica, Western, Long Beach, and Reseda).

• Further enhance security systems and training through the expenditure of grants from Department of Homeland Security .

• Start construction of new Division 6 facility in the Westside/Central Service Sector.

• Award design/build contract for the construction of the new Division 9 transportation building in the San Gabriel Service Sector.

• Complete the light rail facility expansion projects at Divisions 11 and 22.

• Complete the service planning development for the bus restructuring study (Metro Connections).

• Improve wayfinding and signage at Metro bus and rail locations.


FY06 Budget


Metro Operations Reports

FY04 FY05 FY06Department FTEs Budget Amended Budget

1 Metro Rail 1,104 1,090 1,099 2 San Fernando Valley Service Sector 987 1,014 1,056 3 San Gabriel Valley Service Sector 951 972 975 4 Gateway Cities Service Sector 834 975 1,058 5 South Bay Service Sector 1,291 1,220 1,173 6 Westside/Central Service Sector 1,359 1,367 1,374 7 Contracted Bus Services 6 5 4 8 Bus Operations Control 73 73 76 9 Central Maintenance 332 323 328

10 Vehicle and Systems Technology 39 32 18 11 Service Planning & Development 90 85 80 12 Manpower 23 21 17 13 Operations Central Instruction 125 96 95 14 Facilities 195 192 172 15 Operations Security 99 97 97 16 Safety 15 14 17 17 Freeway Services 9 8 9 18 Executive Office, Metro Operations 8 7 7 19 Metro Operations Total FTEs 7,540 7,591 7,654


20 Metro Rail 121,597$ 186,296$ 208,255$ 21 San Fernando Valley Service Sector 92,703 107,087 115,348 22 San Gabriel Valley Service Sector 91,759 101,138 107,133 23 Gateway Cities Service Sector 84,788 96,294 110,072 24 South Bay Service Sector 117,694 133,561 124,445 25 Westside/Central Service Sector 128,367 140,530 151,017 26 Contracted Bus Services 35,143 36,233 41,727 27 Bus Operations Control 6,315 6,539 7,204 28 Central Maintenance 46,841 55,926 55,925 29 Vehicle and Systems Technology 86,284 188,733 115,739 30 Service Planning & Development 12,881 14,320 10,886 31 Manpower 1,449 1,608 1,385 32 Operations Central Instruction 7,131 6,624 7,051 33 Facilities 45,027 83,802 70,882 34 Operations Security 51,463 69,524 70,487 35 Safety 1,849 2,835 4,491 36 Freeway Services 24,407 32,613 36,408 37 Executive Office, Metro Operations 10,170 6,966 6,698 38 Metro Operations Total 965,869$ 1,270,628$ 1,245,153$


FY06 Budget



39 Wages & Benefits 565,541$ 634,254$ 662,289$ 40 Services 90,086 121,705 144,494 41 Purchased Transportation 30,912 26,422 32,442 42 Fuel, Lubricants & Propulsion Power 50,251 64,195 70,539 43 Materials & Supplies 65,043 76,610 76,371 44 Casualty & Liability 42,469 39,342 41,227 45 Other Support 18,782 20,773 18,255 46 Acquisitions 104,250 281,496 197,708 47 Equipment 348 1,840 4,034 48 Subsidies (95) 4,778 - 49 Debt (1,718) (787) (2,207) 50 Metro Operations Total 965,869$ 1,270,628$ 1,245,153$


FY06 Budget


Metro Operations: Key Performance Plans and Measures

FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

In-service on-time performanceBus Systemwide 69.23% 65.43% 69.34% 70.00%San Fernando Valley Sector 67.30% 67.47% 69.27% 70.00%San Gabriel Valley Sector 70.02% 69.98% 70.14% 75.00%Gateway Cities Sector 74.53% 69.34% 70.90% 70.00%South Bay Sector 63.67% 61.74% 64.74% 70.00%Westside/Central Sector 67.88% 63.31% 62.74% 70.00%

Complaints per 100,000 BoardingsBus Systemwide 4.23 4.51 3.60 3.50San Fernando Valley Sector 6.32 5.45 4.57 4.25San Gabriel Valley Sector 3.57 3.08 2.91 2.90Gateway Cities Sector 2.63 4.63 2.43 2.40South Bay Sector 4.02 5.30 3.95 3.90Westside/Central Sector 4.84 5.30 4.02 3.75

Mean Miles Between Chargeable Mechanical FailuresBus Systemwide 6,883 6,790 7,179 7,500San Fernando Valley Sector 8,616 7,794 9,871 9,000San Gabriel Valley Sector 7,696 7,018 6,938 8,000Gateway Cities Sector 7,800 8,129 5,392 5,500South Bay Sector 6,237 6,810 6,785 7,000Westside/Central Sector 5,720 5,791 7,672 7,800

Bus Scheduled Revenue Hours Delivered 97.07% 88.55% 99.37% 98.90%Bus Farebox Revenue Recovery 28.3% 25.7% 28.0% 26.5%Bus Subsidy per Boarding $1.44 $1.60 $1.46 $1.61Bus Fare per Boarding $0.58 $0.57 $0.60 $0.60

Bus Cost per Revenue HourBus Systemwide $103.23 $109.40 $104.25 $109.09Orange Line n/a n/a n/a $154.88San Fernando Valley Sector $83.94 $102.46 $91.72 $94.01San Gabriel Valley Sector $86.68 $99.53 $84.34 $90.32Gateway Cities Sector $103.84 $112.55 $88.50 $89.17South Bay Sector $79.89 $93.67 $89.96 $93.20Westside/Central Sector $84.03 $98.57 $87.38 $95.88

Goal: Improve transit services

Objective: Improve service quality and capacity of the bus and rail systems


FY06 Budget


FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Rail Mean Miles Between Mechanical Failures 7,025 11,356 13,407 15,000

Complaints per 100,000 BoardingsHeavy Rail 1.20 1.17 1.03 1.00Light Rail 1.29 1.43 1.23 1.00

Cost per Revenue HourHeavy Rail $244.39 $227.70 $274.45 $297.18Light Rail $300.25 $333.71 $365.48 $412.53

Fare Revenue RecoveryHeavy Rail 23.6% 24.9% 30.7% 27.0%Light Rail 21.0% 16.5% 15.1% 14.7%

Subsidy per BoardingHeavy Rail $1.51 $1.66 $1.52 $1.61Light Rail $2.13 $2.83 $2.83 $3.47

Fare per BoardingHeavy Rail $0.48 $0.53 $0.63 $0.60Light Rail $0.57 $0.56 $0.52 $0.60

In Service On-Time PerformanceHeavy Rail 99.15% 99.04% 98.59% 99.20%Light Rail 97.84% 98.77% 98.54% 99.00%

Scheduled revenue vehicle hours deliveredHeavy Rail 98.75% 98.59% 97.87% 99.67%Light Rail 97.05% 97.58% 97.99% 99.50%

Freeway Service Patrol (FSP) - Average monthly assists 29,256 27,507 26,191 25,000SAFE - Average monthly calls answered 10,640 9,658 8,441 9,000


Objective: Improve service quality and capacity of the bus and rail systems


FY06 Budget


Metro Operations: Key Performance Plans and Measures, continued

FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Vehicle Accidents per 100,000 Hub MilesBus Systemwide 3.86 3.65 3.40 3.25San Fernando Valley Sector 2.91 2.99 2.48 2.40San Gabriel Valley Sector 3.40 2.91 2.61 2.50Gateway Cities Sector 4.07 3.86 3.87 3.60South Bay Sector 4.00 3.68 3.42 3.60Westside/Central Sector 4.72 4.61 3.46 3.40

New lost work time indemnity claims reported/filed Bus Systemwide 1,367 888 880 800Rail 109 43 102 80

New workers' comp indemnity claims per 200,000 exposure hrsBus Systemwide 22.31 17.64 15.62 15.00San Fernando Valley Sector 16.72 15.15 16.62 16.00San Gabriel Valley Sector 23.15 16.12 9.94 9.90Gateway Cities Sector 25.30 20.19 14.75 16.50South Bay Sector 17.28 14.84 16.12 16.20Westside/Central Sector 28.74 21.52 19.07 20.00Rail 11.25 11.59 9.58 9.50

Passenger accidents per 100,000 boardingsBus Systemwide 0.21 0.21 0.22 0.20Heavy Rail 0.02 0.05 0.02 0.02Light Rail 0.04 0.03 0.04 0.04

Rail accidents per 100,000 revenue train milesHeavy Rail 0.07 0.00 0.25 0.14Light Rail 0.51 0.66 0.37 0.37

Goal: Develop an effective and efficient workforce

Objective: Enhance a safety-conscious culture throughout Metro and its customers and business partners


FY06 Budget

Strategic Business Units Countywide Planning & Development • VI-15

COUNTYWIDE PLANNING & DEVELOPMENT

Organization Chart

Introduction

Countywide Planning and Development (CP&D) is responsible for programming and administering federal, state, and local transportation funds, preparing a financially constrained TIP, and planning and coordinating regional transportation services and infrastructure improvements. It does this in partnership with the County of Los Angeles and the 88 cities and 17 municipal operators within the County.

Executive Office

The Executive Office directs the overall programs of Metro’s planning and programming services, develops strategies, defines major priorities, and resolves critical transportation issues in Los Angeles County.

Long Range Planning and Coordination

The Long Range Planning and Coordination (LRP&C) department is responsible for regional transit planning, long and short range transportation planning, and transportation modeling and technical analysis necessary to

support the development of countywide and regional plans and programs. The Department is responsible for regional transit activities including planning, design, development, monitoring, and municipal operator coordination for the Metro Rapid program, and for developing the 2005 Regional Short-Range Transportation Plan. The Department is also responsible for developing countywide plans and programs, including the Long- and Short-Range Transportation Plans and the Congestion Management Program, and for regional transportation planning and air quality conformance coordination. Finally, the Department performs technical analysis in support of plans, programs, and projects, including transportation modeling, geographic information system analysis, user benefit analysis for federal New Starts funding, and freight data collection and modeling.

Transportation Development and Implementation

The Transportation Development and Implementation (TDI) department is responsible for project development, management, and/or implementation of multiple modes of transportation within Los Angeles County, including

Long Range Planning& Coordination

Transportation Development& Implementation

Programming &Policy Analysis

Chief PlanningOfficer


FY06 Budget

VI-16 • Countywide Planning & Development Strategic Business Units

Highway/Freeway, Arterials, TDM, Rail and Busway, Signal Synchronization, Intelligent Transportation Systems, Bicycle, Pedestrian, Goods Movement and others. In addition, this department approves and administers the utilization of Call for Projects (CFP) funds by the cities and county and conducts joint development activities. This department also serves as the project planning lead in the LRTP and CFP. The department is organized into geographic teams. The area teams are Central, South Bay, Gateway Cities/Southeast, Westside, San Gabriel Valley and the San Fernando Valley/North County. Each team is responsible for project management and implementation for multiple modes of transportation within its geographic area.

Programming and Policy Analysis

Programming and Policy Analysis (P&PA) is responsible for strategic capital planning, regional and local programming, and regional program management for all fund sources that support Metro’s mission of improving mobility and promoting innovative and comprehensive transportation systems throughout Los Angeles County. P&PA also manages the Transportation Improvement Program (TIP); analyzes state, federal and local programming proposals and policies; programs the Call for Projects (CFP); serves as the funding lead in the LRTP and CFP; allocates local and municipal operator funding; provides policy development and guidance for regional programs; is Metro liaison with state and federal grantor agencies; and is Metro liaison to the cities on Proposition A and Proposition C Local Return, Discretionary funds, and TDA Articles 3, 4 and 8.


• Conduct planning, design, development, and programming of Metro Rapid lines.

• Initiate nexus study for countywide developer mitigation fee through Congestion Management Program.

• Initiate update of the Long Range Transportation Plan.

• Complete environmental clearance for preliminary engineering for the Exposition to Robertson LRT Project.

• Collect data for state-of-the-art freight model.

• Support 2006 Countywide Call for Projects Re-certification and De-obligation activities.

• Review federal, state and local legislative initiatives and policy issues (i.e. TEA-LU/SAFETEA, Proposition 42, SB 45, etc); support federal, state and local legislative requests (e.g. FY06 and FY07 USDOT Appropriations).

• Prepare FY06 Countywide Funding Sources Guide that provides descriptive array of key financial resources for Metro and Los Angeles County.

• Implement actions resulting from FY05/06 budget reductions, including:

♦ Longer lead-time requirements for MOU and LOA processing, grant applications, State TIP amendments, local return


FY06 Budget


questions, and Benefit Assessment District appeals.

♦ Reduced oversight of the Metrolink and regional EZ Transit Pass programs.

• Initiate consultant contract for Route 2 EIR/EIS.

• Initiate consultant work on Goods Movement Action Plan.

• Begin deployment for bus signal priority on four Metro Rapid corridors outside of the City of Los Angeles.

• Initiate Design/Build Soundwall on SR-134.

• Extend Wilshire bus lane to I-405.

• Reduce real estate acquisitions for I-5/ Carmenita Interchange.

• Continue Crenshaw Corridor enhancements.

• Continue SFV North-South Corridor enhancements.

• Expand joint development activity.

• Conduct I-710 Gap Closure Tunnel Feasibility Assessment.

• Conduct Route 57/60 Technical Feasibility Analysis.

• Complete Countywide Bicycle Strategic Plan.


FY06 Budget


Countywide Planning & Development Reports


1 Transportation Dev & Implementation 62 52 48 2 Programming & Policy Analysis 35 31 30 3 Long Range Planning & Coordination 29 23 22 4 Executive Office, Reg Transp Plan & Dev 4 4 4 5 Countywide Planning & Development Total FTEs 130 110 104


6 Transportation Dev & Implementation 19,581$ 25,000$ 20,822$ 7 Programming & Policy Analysis 630,070 815,417 746,931 8 Long Range Planning & Coordination 4,811 5,038 4,237 9 Executive Office, Reg Transp Plan & Dev 657 522 543

10 Countywide Planning & Development Total 655,119$ 845,977$ 772,532$


11 Wages & Benefits 13,294$ 12,299$ 12,133$ 12 Services 14,583 21,935 17,034 13 Materials & Supplies 449 523 168 14 Other Support 201 350 310 15 Acquisitions 198 571 - 16 Equipment - 227 625 17 Subsidies 626,394 810,071 742,262 18 Countywide Planning & Development Total 655,119$ 845,977$ 772,532$


FY06 Budget


Countywide Planning & Development: Key Performance Plans and Measures

Goal: Provide leadership for the region's mobility agenda FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

% of MTA-sponsored plans and projects within 10% of schedule 100% 80% 85% 80%% of projects on budget 100% 90% 90% 90%% of scope of work for I-710 South Corridor EIR/EIS developed n/a 0% 10% 100%% of Route 57/60 Interchange Technical Feasibility Analysis completed n/a 5% 15% 100%% of I-710 Gap Closure Tunnel Feasibility Assessment completed n/a 20% 30% 100%% of participation at COG/COG working group meetings related n/a 90% 95% 90% to transportation issues% of Technical Advisory Committee (TAC) meetings chaired n/a 100% 100% 100%% of technical studies for Crenshaw Corridor Short-Term Transit n/a 0% 20% 100% Enhancements completed% of Multi-County Goods Movement Action Plan completed n/a 5% 20% 50%% of plans developed to extend the dedicated bus lane in West LA n/a n/a n/a 100% from Federal toward the I-405 Freeway% of draft EIS/EIR for environmental clearance of Glendale n/a n/a 10% 50% Corridor - Route 2 terminus completed% of PSR for several low-cost improvements to 101 Corridor n/a n/a n/a 100% Study completed% of Design/Build Soundwall Demonstration Project on SR-134 n/a n/a n/a 30% design work completed% of Bicycle Strategic Plan completed n/a n/a n/a 100%# of additional public agencies added to the RIITS network n/a n/a n/a 3% of STIP allocation requests received 95% 100% 100% 100%% of STIP time extension requests received 85% 100% 100% 100%% of FAP Program funding allocated on schedule 100% 100% 100% 100%# of financial forecasting model runs completed 2 2 2 2# of funding sources matrix updates completed 1 1 1 1# of revenue demand charts for major funding sources completed 1 1 1 1$ available to pay on invoices received (for subsidies to others) $602M $683M $750M $743M% of Local Return forms turned around within prescribed time 100% 100% 100% 100%% of applications needed to be filed for LA County projects and 99% 100% 100% 100% programs sponsored by others% of grant applications needed to be filed for Metro projects 100% 100% 100% 100%% of MOUs and LOAs developed and submitted for processing 100% 100% 100% 100%% of MOUs developed and submitted for processing (cities) 100% 100% 100% 100%% of MOUs developed and submitted for processing (muni ops) 100% 100% 100% 100%$'s received from Benefit Assessment Districts $14.3M $18.0M $20.0M $20.0M% of reassessment requests received and processed on schedule 100% 100% 100% 100%Implement the Congestion Management Program's annual conformity process 100% 100% 100% 100%Update the LRTPin accordance with scheduled actions. n/a 100% 100% 100%Perform New Starts analyses per FTA-set submittal deadlines 100% 100% 100% 100%

Objective: Provide quality planning, technical analysis and programming


FY06 Budget


Countywide Planning & Development: Key Performance Plans and Measures continued

Goal: Develop an effective and efficient workforce FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

% employees completed safety training 97% 100% 100% 100%

Goal: Improve transit services FY03 Actual

FY04 Actual

FY05Estimated

FY06 Target

# of Metro Rapid corridors implemented 4 3 5 4

Objective: Implement innovative technologies

Objective: Create a safety-conscious culture throughout Metro and its customers and business partners


FY06 Budget

Strategic Business Units Construction Project Management • VI-21

CONSTRUCTION PROJECT MANAGEMENT

Organization Chart

Introduction

Construction Project Management is responsible for providing engineering services and construction oversight for rail projects, transit corridors, capital projects, and rail engineering service requests. The primary focus during FY06 is the completion of the Metro Orange Line busway and bikeway construction and systems installation and testing to allow for public opening; the Eastside Extension completion of the underground station box excavations, the start of tunneling operations, and completion of the 101 Freeway overcrossing structure; 90% completion of the Canoga Station/Park and Ride; completion of preliminary engineering design, real estate acquisition and award of the design/build contract for the Mid-City Exposition LRT Project; and, the continuation of closeout and claim settlements on all open contracts.

Executive Office

The Executive Office for Construction Project Management is responsible for managing division and cost center activities in support of the Metro Capital Program in addition to providing technical

and administrative guidance and assistance.

Quality Management

Quality Management is responsible for the implementation of administrative and control measures. These measures are in effect during design, procurement, construction, installation, testing, start-up and turnover that ensure the transit system meets the expectations of our customers.

Engineering

Engineering is responsible for the cost-effective provision of design and other engineering professional services from preliminary engineering through final design and construction of bus and rail projects. These projects range from minor updates of rail facilities and wayside systems to design of major rail projects. The Engineering Department includes Project Engineering Facilities and Project Engineering Systems. Project Engineering Facilities’ main responsibilities are to provide design reviews of major capital projects such as the Metro Orange Line, the Metro Gold

QualityManagement

Project EngineeringFacilities

Project EngineeringSystems

ConstructionManagement

ConstructionSafety

ProgramManagement

Chief CapitalManagement Officer


FY06 Budget

VI-22 • Construction Project Management Strategic Business Units

Line Eastside Extension, and the Mid-City/Exposition Light Rail Transit Project.

Project Engineering Systems

Project Engineering Systems is responsible for the effective execution of the systems design and engineering for all major rail, Metro Rapid Transit, and Rail Capital projects.

Construction Management

Construction Management is comprised of the Construction Management section, Environmental Compliance/Services, and Third Party Administration cost centers.

Construction Management is responsible for the construction management and oversight of all rail construction-related activities and construction related rail capital projects.

Environmental Compliance/Services (EC/S) provides environmental clearance for Metro projects and ensures compliance with the provisions of federal, state and local laws, regulations and guidelines related to impacts of the projects on the environmental and cultural resources. EC/S is responsible for providing the appropriate plan to mitigate contamination impacts, maintaining compliance with all environmental regulations pertaining to hazardous wastes and materials, monitoring environmental contractors working on projects, and providing regulatory interface to resolve Metro concerns.

Third Party Administration interfaces with other government agencies and utilities to design and construct improvements to existing systems and new projects.

Construction Safety

Construction Safety is responsible to ensure the highest level of safety in the workplace on all construction projects, including the Metro Orange Line, the Metro Gold Line Eastside Extension, and capital projects. The staff oversees all safety related activities for the Construction Project Management Division.

Program Management

Program Management is responsible for planning, scheduling, budgeting, tracking, reporting, analyzing, and forecasting the impact of engineering, construction, and Rail Capital Projects.

Program Management applies cost and schedule management tools to various capital projects by developing cost and schedule baselines in order to ensure that projects are completed on time and within budget.

This department also provides timely and accurate configuration management of contract changes and all documentation in support of Construction Project Management projects.


• Commencing in FY06, capital program activity will be budgeted in the enterprise fund.

• Metro Orange Line: The FY06 program includes funding for Contract C0675 Design/Build to complete construction of the busway and bikeway. Work will entail completing busway and bikeway construction and systems installation,


FY06 Budget


landscaping and contract close out activities.

• Canoga Station/Park and Ride: The FY06 program includes funding for starting and substantially completing construction, which will include a new station, surface park and ride spaces and one-third mile extension of the busway.

• Metro Gold Line Eastside Extension: The FY06 program includes funding for completion of both underground station box excavations; delivery of tunnel boring machines and start of tunneling operation; excavation and construction of the east and west portals; procurement of systems equipment; and completion of the 101 Freeway overcrossing structure.

• Mid-City/Exposition LRT Project: The FY06 budget includes funding for completion of preliminary engineering, initiation of final design and construction, third party utility relocations; real estate acquisitions; and award of the design/build contract.

• P2550 Rail Cars: The FY06 Light Rail Vehicle (LRV) program includes delivery of approximately 20 new LRV cars of the total 40 cars. The FY06 program also covers payments for completed manufacturer's engineering milestones.

• Capital Projects: The FY06 budget includes costs for engineering design and construction activities for the completion of construction of the Light Rail Divisions 11, 21, and 22 improvements which includes the blow down pit and enclosure structure, main shop expansion and car wash, environmental inspection and environmental remediation activities, and various rail facilities and wayside system upgrades.


FY06 Budget


Construction Project Management Reports


1 Construction 34 26 21 2 Program Management 38 33 27 3 Engineering 28 17 14 4 Quality Management 14 11 9 5 Construction Safety 7 5 4 6 Executive Office, Construction Project Mgmt 14 14 13 7 Construction Project Management Total FTEs 135 106 88


8 Construction 3,116$ 2,948$ 2,180$ 9 Program Management 3,903 3,901 3,350

10 Engineering 3,062 1,871 1,540 11 Quality Management 1,419 1,234 1,118 12 Construction Safety 617 569 460 13 Construction Contracts 149,087 374,546 329,213 14 Executive Office, Construction Project Mgmt 1,529 2,289 2,804 15 Construction Project Management Total 162,731$ 387,358$ 340,664$


16 Wages & Benefits 13,406$ 12,006$ 10,327$ 17 Services 19,408 45,974 28,451 18 Materials & Supplies 264 429 623 19 Casualty & Liability 17 3,490 - 20 Other Support 202 608 349 21 Acquisitions 128,113 324,651 300,914 22 Equipment 1,188 200 - 23 Subsidies 132 - - 24 Construction Project Management Total 162,731$ 387,358$ 340,664$


FY06 Budget


Construction Project Management: Key Performance Plans and Measures

FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Orange LineAchieve Contract C0675 Design/Build Milestone 3 Systems Complete, Milestone 4A Tujunga to Van Nuys, Milestone 4B Van Nuys to Warner Center and Milestone 4C Substantial Completion to allow Revenue Operations to commence for the public

n/a n/a n/a 30-Sep-05

Complete all remaining work including landscaping except reliability demonstration testing

n/a n/a n/a 31-Dec-05

Closeout C0675 Design/Build contract except for remaining reliability demonstration testing which continues into FY07

n/a n/a n/a 30-Jun-06

Canoga Station/Park and RideIssue construction Notice to Proceed and begin Contract C0739 construction.


Substantially complete Contract C0739. n/a n/a n/a 30-Jun-06

Gold Line Eastside ExtensionExcavate 1st/Boyle shaft and setup to receive Tunnel Boring Machines (TBM's)


Begin tunnel operations n/a n/a n/a 31-Dec-05Issue all design packages as Approved for Construction (AFC)


Caltrans construction contractor (101 Freeway Overcrossing) turns over abutment 10 to C0803 contractor


Procurement of major systems components to begin


Mid-City/Exposition Light Rail TransitComplete Preliminary Engineering n/a n/a n/a 30-Sep-05Issue "Negotiated Design Build" contract for Solicitation of Bids


MTA Board approval of the FEIS n/a n/a n/a 31-Dec-05Start Third Party Utility Relocations n/a n/a n/a 31-Dec-05Obtain Record of Decision from the FTA n/a n/a n/a 31-Mar-06Award the Design-Build Contract for the Mid-City/Exposition LRT Project

n/a n/a n/a 31-Mar-06

Objective: Design and build quality projects

Goal: Deliver quality capital projects on time and within budget


FY06 Budget


Construction Project Management: Key Performance Plans and Measures, continued


FY04 Actual

FY05 Estimated

FY06 Target

Division 11Complete 45 % of project construction n/a n/a n/a 30-Sep-05Complete 65% of project construction n/a n/a n/a 31-Dec-05Complete 95% of project construction and initiate close out of design/build contract


Complete 100% of project construction and continue contract close-out


Division 21Start 30% design of Main Shop Expansion and Car Wash


Start contract procurement process n/a n/a n/a 31-Dec-05Complete contract procurement process n/a n/a n/a 31-Mar-06Award Design/Build contract for Main Shop Expansion and Car Wash


Division 22 Complete Blow Down pit and enclosure construction, start contract close out


Start procurement process for crossover track and tire press machine

n/a n/a n/a 31-Dec-05

Start construction of crossover track and install tire press machine


FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Incident Statistics Monthly publication of injury and incident summary reports for each Major Capital Project and smaller operations Capital Projects as a whole

n/a n/a n/a 100%

Use monthly reports to monitor and respond to (through various interventions) developing negative trends in the incident data

n/a n/a n/a 100%

Use monthly reports to monitor and reward/recognize developing positive trends in the incident data

n/a n/a n/a 100%

Objective: Work with contractors to provide a safe work site to minimize lost time accidents

Objective: Improve, expand, and add operating facilities



FY06 Budget

Strategic Business Units Communications • VI-27

COMMUNICATIONS

Organization Chart

Introductions

Communications is responsible for the strategic evaluation, development and implementation of agency-wide marketing, communications, sales and customer service programs.

Executive Office, Communications The Communications Executive Office oversees and directs the activities of the organization to increase awareness and improve public perception of Metro and its services, to create a positive image of Metro, to attract discretionary riders, and to position Metro as the recognized transportation leader both regionally and nationally. In addition, the group is responsible for developing and implementing new programs and services that enhance transportation options for Los Angeles County residents.

Creative Services Creative Services provides design services (graphic design, environmental graphics, graphic standards, photography and illustration), production management (procurement and trafficking), website management (design and coordination) and implementation of Metro's public art policy (Metro Art), which includes community involvement and artist participation in the development of Metro's transit system and provides free docent-guided tours.

Customer Communications Customer Communications promotes awareness and use of Metro programs, projects and services through informational materials, signage, advertising and corporate sales promotion. The department markets existing routes and service enhancements as well as a complete line of alternative transportation, pass and rideshare programs to area employers, educational institutions,

CreativeServices

CustomerCommunications

CustomerRelations

Fare Policy &Programs

PublicRelations

Chief CommunicationsOfficer


FY06 Budget

VI-28 • Communications Strategic Business Units

current and potential riders, and the general public. The group includes internal printing services, manages all purchased media as well as revenue contracts for advertising on Metro buses, and handles internal employee communications.

Customer Relations

Customer Relations provides one-on-one regional transportation information through 1-800-COMMUTE, offering route, schedule and fare information, in addition to processing customer input and complaints. The department also handles official correspondence written on behalf of Board members and Metro executive staff, manages customer response analysis and operates the Metro Customer Information Distribution Center.

Fare Policy and Programs

Fare Policy and Programs handles the overall development, implementation and compliance of agency-wide fare policies, develops and manages fare programs and oversees fare media production and distribution to Metro bus divisions, Customer Service Centers and vendor outlets. In addition, the group works with contracted and municipal bus operators regarding Interagency and Metro to Muni Transfers, and is responsible for various elements related to the implementation of the new UFS and TAP programs.

Public Relations Public Relations manages media relations, special events, production of Metro cable shows and videos, commercial filming, the Metro Store and employee activities. It informs the public about Metro’s activities via press releases, media features,

community speakers and Metro’s internal and external websites.


• Launching the Metro Orange Line will be of primary focus early in the fiscal year. With new services and new vehicles being introduced throughout the system, ridership-building efforts will have the highest priority.

• Increasing awareness of available service to local communities will be a new ridership initiative for FY06. The goal is to use targeted service marketing and ridership promotions to make more people aware of the Metro services available at a local level.

• Rolling out the UFS/TAP smart card system will be a major educational undertaking for the agency. As the system phases in over the next two years, it will involve a complete makeover of the retail and customer service sales network as well as a huge customer communication effort.

• Fare Policy and Programs will take proactive measures in anticipation of UFS/TAP smart card implementation. In addition to phasing tokens out of the system, management will develop strategic plans for the department, including a transition process for reduced fare customers and utilization of Customer Centers. Besides reducing Metro Customer Information Centers from six to four, other changes include full implementation of K-12 Photo-less Student Fare Card program; expansion of E-Commerce On-Line Pass sales for monthly fare media; and support fulfillment needs for New Resident and Employer Programs.


FY06 Budget


• With Metro now offering a complete line of transit and rideshare programs, business-to-business marketing will expand in an effort to get more local businesses to provide subsidized transit passes and rideshare incentive programs to their employees.

• Upgrading system signage and customer amenities will be a focal point in FY06. Metro Art will take a closer look at customer amenities and develop standard designs that may be used at multiple facilities.

• Following three years of program improvements, modifications and consolidations, an update of the rideshare study will be initiated to identify what impacts have been made and where additional opportunities may lie.

• Survey research activities to measure customer satisfaction, general public opinion and impacts from new Metro services initiatives will be streamlined to improve cost effectiveness.


FY06 Budget

VI-30 • Communications Strategic Business Units

Communications Reports


1 Creative Services 18 14 14 2 Customer Communications 33 26 30 3 Customer Relations 118 102 108 4 Fare Policy & Programs 43 44 23 5 Public Relations 15 12 10 6 Executive Office, Communications 10 11 8 7 Communications Total FTEs 237 209 193


8 Creative Services 3,067$ 3,391$ 2,552$ 9 Customer Communications 11,384 10,849 10,183

10 Customer Relations 6,993 6,769 7,339 11 Fare Policy & Programs 4,087 5,800 3,999 12 Public Relations 3,145 2,653 2,303 13 Executive Office, Communications 2,052 2,038 2,348 14 Communications Total 30,728$ 31,501$ 28,724$


15 Wages & Benefits 16,607$ 16,132$ 15,191$ 16 Services 7,035 9,375 8,086 17 Materials & Supplies 1,122 1,138 1,145 18 Other Support 5,732 4,493 4,049 19 Acquisitions 232 362 253 20 Communications Total 30,728$ 31,501$ 28,724$


FY06 Budget


Communications: Key Performance Plans and Measures

FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Average wait time on 1-800-COMMUTE (min:sec) 2:28 3:48 5:30 5:15

Value of positive news coverage in print and broadcast media, $3,530,000 $15,762,074 $7,000,000 $5,000,000 as equivalent value of advertising

Total radio reach/frequency (percentage of targeted audience 89%/11.0 77%/11.0 75%/8.0 75%/6.0 that heard radio ad/number of times ads were heard)

Total newspaper ad distribution per quarter, in 000's (total distri- 56,964 59,278 58,000 54,000 bution of newspapers that carried ad times # of ads run in qtr)

Total revenue generated from film leasing $703,697 $606,676 $550,000 $550,000

Number of active employer worksites using Metro Commute n/a n/a n/a 1,075

Passes sold monthly through employer accounts 7,385 7,694 9,130 10,043

Rideshare Incentive participants (mainly new Rideshare n/a n/a n/a 20,000 participants at employer worksites)

Number of vanpools in LA County 693 945 960 975


Objective: Improve service quality and capacity for bus and rail systems


FY06 Budget

VI-32 • Support Services Strategic Business Units

SUPPORT SERVICES

Organization Chart

Introduction

Support Services, headed by the Chief Financial Officer (CFO), provides cross-functional administrative and financial services to support the Metro’s core business units. Support Services is comprised of departments and resources that serve all operating units.

Chief Financial Officer

The CFO oversees seven departments: Accounting, Management & Budget, Information Technology Services, Management Audit Services, Procurement & Material Management, Risk Management, and Treasury. The CFO also provides support for Metro’s operating and capital plans.

Accounting

Accounting generates financial reports and analyses used to support Metro’s financial activities and reporting and auditing requirements. This encompasses bond issues, billing and reporting to funding partners, and management

evaluations of budget variances. Accounting also records Metro’s project accounting, capital assets, fare media, payroll, accounts payable, and accounts receivable transactions through the Financial Information System (FIS).

Management & Budget

The Office of Management & Budget (OMB) develops the annual operating, capital, and subsidy budgets; prepares revenue and expense projections; prepares the annual revision to the 10-Year Forecast; maintains the CEO’s Scorecard, manages operating and capital expenditure and revenue plans; and conducts special studies that analyze key business activities.

Information Technology Services

Information Technology Services (ITS) is responsible for the development, implementation, operation, maintenance, and technical support of Metro’s computer

Accounting Office ofManagement

& Budget

InformationTechnology

Services

ManagementAudit

Services

Office ofProcurement &

Material Management

RiskManagement

Treasury

Chief FinancialOfficer


FY06 Budget

Strategic Business Units Support Services • VI-33

systems and integrated communications network.

Management Audit Services

Management Audit Services’ mission is to provide highly reliable, independent, objective assurance and consulting services, designed to improve Metro’s operations. The department accomplishes this by bringing a systematic, disciplined approach to evaluating and recommending improvements to the effectiveness of risk management, controls and governance processes.

Management Audit Services assists the Chief Executive Officer and his management team by providing the following services: a) test and report on the evaluation of internal controls throughout the agency, b) conduct compliance reviews to applicable laws and regulations, c) review financial and management data for accuracy, completeness and reliability, d) conduct performance audits of operations and processes to ensure agency resources are managed economically, efficiently, and effectively, e) perform management control self-assessments (CSA), f) perform contract and contract change order audits as required by law and Board adopted policy, g) perform audits of grantees in accordance with grants and Memoranda of Understanding (MOUs), h) pre-qualify vendors in compliance with law and Board adopted policy and, i) track and resolve all external and internal audit findings as required by OIG policy and Generally Accepted Government Auditing Standards.

Procurement & Material Management

Procurement & Material Management’s mission is to deliver cost effective, value-added services that are responsive to and supportive of clients.

Executive Office, Procurement & Material Management

The Executive Office of Procurement & Material Management provides oversight for the acquisition and post-award management of all goods and services for Metro. The Executive Office oversees four basic functions: Process Management, Material Management, Contract Administration, and Client/Vendor Services. It provides for the development and implementation of strategic procurement initiatives designed to improve service and lower costs.

Material Management

Material Management provides planning, acquisition and control of inventory assets to achieve client service level expectations in a cost effective manner. This includes forecasting material requirements for scheduled maintenance and component rebuild programs, acquiring goods and services, and providing supply chain management, inventory storage, security, and timely distribution of materials.

Contract Administration

Contract Administration performs acquisition planning, coordinates agency pre-award actions to produce executable contracts and then performs post-award contract administration, claims/change order processing/negotiation, contract close-out, and unencumbers physically complete contracts for the agency’s strategic business units. It also supports


FY06 Budget


the procurement of all small purchase non-inventory requirements and administers the Metro purchasing card program.

Client/Vendor Services

Client/Vendor Services oversees and manages the administrative processes and business information systems in support of Procurement and Material Management and their clients. This includes five major functional areas: operation of the Automatic Storage and Retrieval System (40,000 random storage locations); support of the purchase order module of the Financial Information System (FIS); maintenance of the vendor data base and related systems including the department’s Internet and Intranet web sites; management and control of documents, reports and records; and the planning and deployment of major systems, such as M3, FIS, Internet Procurement, Internet Supplier Portal, Purchasing Intelligence, e-Marketplace, and TransportMax.

Risk Management

Risk Management is responsible for protecting Metro’s assets through the identification, management, and control of insurable risks. These responsibilities include management and oversight of the following: workers’ compensation claims administration (including special investigations); general liability claims administration; the placement and administration of appropriate insurance programs; self-insured liability reserves through risk financing techniques; and the recovery of insurance proceeds for damage to Metro property.

Treasury

Treasury forecasts, monitors, and manages cash requirements; oversees and directs the investment of available funds and debt proceeds; and administers the debt program. The Pension and Benefits unit administers all facets of group health and welfare plans, pension plans, 401(k) and 457 deferred compensation, and unemployment insurance, and provides retirement and financial counseling programs. The Revenue Administration unit collects, counts, and deposits fare revenue; inspects and monitors fare collection facilities, equipment, and procedures; participates with law enforcement to counteract counterfeit fare media; and maintains and repairs Ticket Vending Machines (TVMs) fare collection equipment.


Accounting

• Implement use of electronic invoicing for selected large volume vendors to reduce manual processes.

• Implement FIS’ cash management module to increase internal controls and efficiencies in recording cash transactions.

• Refine new financial reporting module to provide financial statement readers with comprehensive and easily understood financial information.

• Refine Cost Allocation Plan methodologies to respond to both management and funding requirements.


FY06 Budget


• Implement employee time reporting to improve internal controls by submitting approved time sheets and reducing duplicative data entry.

Office of Management & Budget

• Revise financial schedule formats to comply with Governmental Accounting Standards Board requirements for consolidating financial information into either business-type or governmental activities.

• Implement additional components in the integrated performance monitoring management system (CEO’s Scorecard).

• Continue enhancement of the Budget Information and Analysis System (BIAS) to automate manual processes within the system and reduce turnaround time.

• Develop life-of-project reporting in FIS for capital projects.


• Budget reductions have resulted in staffing levels going from 142 in FY05 to 136 in FY06.

• The new ITS Telecommunications Transmission Project will be initiated. Scheduled completion is in FY09.

• Capital projects scheduled for completion in FY06 include upgrades to the Maintenance and Material Management (M3) and the Hastus Scheduling System.


• The department was reorganized and streamlined. Staff was reduced by 21% with a 40% reduction in managers. The overall department budget was reduced by 23%.

• For the first time, the annual audit plan was submitted to Executive Management and the Board for input and approval in conjunction with the budget process.

• The department is focusing more resources on the review of information systems given the importance and impact of information systems to the agency.

• The department is evaluating automated audit workpaper software to determine the most cost-effective and efficient programs available for future implementation.

• A Peer Review will be completed to comply with the requirements of Generally Accepted Government Auditing Standards.


• Refine M3 operations without impacting material support to transit operations.

• Consolidate procurement support to all Strategic Business Units under one Deputy Executive Officer.

• Establish a Statement of Work certification program to improve Agency efficiency and effectiveness.


FY06 Budget


Risk Management

• Eliminated eight consultant positions, primarily in the Workers’ Compensation area, by implementing efficiency improvements that resulted in fewer open claims.

• Implement a chargeback program for general liability expenses to create a greater awareness of these expenses.

Treasury

• Outstanding debt will increase $332 million over the fiscal year.

• The Pension and Benefits unit assumed direct control of the ATU health and welfare trust fund in FY05. The unit will increase their participation in the administration of the TCU and UTU health and welfare trust funds in FY06.

• The volume of currency received in fare boxes and TVMs has significantly increased since the implementation of the Day Pass with the following affects:

♦ One-dollar bill processing costs will increase 260% over FY05 for the currency “sold” to the contracted vendor.

♦ Large bill ($2 - $100) processing expenses will increase since these bills are manually counted in-house.

• The Revenue Administration unit will integrate the following tasks without increasing staff:

♦ Maintain fare collection equipment and collect revenue from thirteen new stations on the new Orange Line.

♦ Provide project implementation support and maintain the new UFS fare boxes on buses and new TVMs at rail stations.

♦ Supply administrative support for the new Transit Access Pass (TAP) smart card program.


FY06 Budget


Support Services Reports


1 Accounting 83 82 78 2 Treasury 65 65 62 3 Office of Management & Budget 22 22 20 4 Information Technology Services 154 142 132 5 Management Audit Services 55 38 30 6 Procurement & Material Management 258 237 226 7 Risk Management 40 47 47 8 Office of the CFO 2 2 2 9 Support Services Total FTEs 679 635 597


10 Accounting 9,530$ 11,183$ 10,325$ 11 Treasury 308,381 334,666 331,353 12 Office of Management & Budget 2,408 2,519 2,446 13 Information Technology Services 31,630 26,667 23,143 14 Management Audit Services 5,948 5,474 4,176 15 Procurement & Material Management 24,662 26,008 24,609 16 Risk Management 9,752 11,531 11,550 17 Office of the CFO 356 373 392 18 Support Services Total 392,667$ 418,422$ 407,995$


19 Wages & Benefits 48,416$ 48,263$ 47,726$ 20 Services 28,753 40,301 35,256 21 Materials & Supplies 4,538 5,024 4,507 22 Casualty & Liability 7,315 7,280 6,629 23 Other Support 10,858 14,958 16,879 24 Acquisitions 2,647 1,850 1,080 25 Equipment 345 - - 26 Subsidies 2,269 - - 27 Debt 287,526 300,746 295,918 28 Support Services Total 392,667$ 418,422$ 407,995$


FY06 Budget


Support Services: Key Performance Plans and Measure

Accounting

FY03 Actual

FY04 Acutal

FY05 Estimated

FY06 Target

# of days to pay invoices from invoice date 35 30 26 25% reduction in number of unprocessed/unmatched 5% 20% 5% 10% invoices over 90 days outstanding from previous year# of days to pay properly approved Expense Reports from 6 6 3 3 submittal date# of days from month end to submit accurate grant billings 8 7 7 7% of errors in total paychecks, including special checks issued 2% 1% 1% 1%% reduction from previus year-end in the amount of 64% 34% 15% 10% uncollected accounts over 90 days outstanding# of calendar days to complete the CAFR 180 121 150 120# of working days to complete FTA Quarterly Financial 45 45 45 45 Report submittals# of days to submit annual NTD Report from year end close 113 120 120 120# of calendar days to complete Proposition A&C audit n/a 120 120 120 from year-end# of calendars days to submit State Controller's Report 83 90 90 90 from quarter- end# of calendar days to submit BAD Reports from year-end close n/a 150 150 150# of working days to complete month-end financial closing 9 12 11 7# of FIS accounting and end user reports, including 4 2 2 2 service sector, developed every quarter% of returned fare media stock (passes/discount stamps) 34% 45% 25% 25% compared to total issued/delivered to agents/vendorsComplete indirect cost plan preparation within six months from 6/30/03 6/30/04 6/30/05 5/31/06 completion of year-end audits# of working days to prepare activity based costing (ABC) n/a 3 3 3 and quaterly financial reports from the quarter-end closing

FY03 Actual

FY04 Acutal

FY05 Estimated

FY06 Target

% of employees sent to Safety training 100% 100% 100% 100%Develop programs and materials to promote safety and reduce 1 1 2 2 injuries in the department, per quarter

Goal: Exercise fiscal responsibility

Objective: Create a safety conscious culture throughout Metro and its customers and business partners

Goal: Develop an effective and efficient workforce.

Objective: Conduct monthly performance monitoring reviews to assess financial performance.


FY06 Budget


Office of Management & Budget

Goal: Exercise fiscal responsibilityFY03

ActualFY04

ActualFY05

EstimatedFY06

Target

Percent of budget expended (budget to actual) 87.5% 81.0% 75.0% 80.0%Percent of revenue collected (forecast to actual) 92.1% 93.2% 95.0% 95.0%

Implement key performance indicators in Metro Scorecard n/a 2 15 25

Maximum number of hours after pay date to access updated n/a n/a 36 36Metro scorecard data

FY03 Actual

FY04 Actual

FY05 Estimated

FY06Target

Percent of OMB staff members who have attended at least one training class per fiscal year 100% 100% 100% 100%

Objective: Manage the approved budget

Objective: Invest in employee development.

Objective: Implement an integrated performance monitoring management system.

Objective: Conduct monthly performance monitoring reviews to assess financial performance.



FY06 Budget


Support Services: Key Performance Plans and Measures, continued


FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Complete all ITS Work Order tickets promptly, professionally, 3.8 4.2 4.4 4.5 and courtesously. Customer rating (scale: 1-low to 5-high)

Application availability to the agency 99.7% 99.8% 99.8% 99.8%

FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Capital project schedule adherence 85.0% 95.0% 95.0% 95.0%


Goal: Exercise fiscal responsibility FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Percentage of audit plan completed 53% 74% 80% 90%Sustention rate of audit questioned costs 86% 62% 58% 65%

Average number of days to complete vendor pre-qualification 17 15 15 15


Objective: Implement an integrated performance monitoring management system

Objective: Improve the procurement process

Objective: Deliver consistent communication services to each Metro segment

Objective: Develop Integrated Project Tracking System



FY06 Budget




FY04 Actual

FY05 Estimated

FY06 Target

Quarterly average No-stock hold as a percent of active fleet 0.14% 0.83% 0.50% <1.0%

FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Percentage of invoices paid within 30 days 84% 90% 95% 95%Percentage of cost estimates that are at or below the Estimating 70% 75% 80% 70% Department's stated standard cycle timeAverage inventory material procurement cycle time (days) n/a 8.92 8.50 9.00Average non-inventory material/services procurement cycle n/a 28.37 26.00 26.00 time for IFB (days)Average non-inventory material/services procurement cycle n/a 40.75 42.00 45.00 time for RFP (days)Client feedback (scale: 1-low to 3-high) n/a 2.91 2.90 2.00

Risk Management

FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

# of new reported Workers' Compensation claims 1,987 1,607 1,498 1,430# of new Workers' Compensation claims per 100 employees 21.40 16.80 16.10 15.40Total number of lost work days 118,160 111,260 64,070 60,850Number of lost work days per 100 employees 1,275 1,192 689 655Number of new bus traffic accident claims 2,610 2,189 2,132 2,044# of new bus traffic accident claims per 100K hub miles 2.67 2.44 2.06 1.98


FY04 Actual

FY05 Estimated

FY06 Target

Workers' Compensation Subrogation Recoveries n/a $14,566 $150,000 $150,000Public Liability/Property Damage Subrogation Recoveries $579,243 $462,371 $450,000 $450,000Workers' Compensation Chargeback per 100 employees $564,731 $607,066 $640,941 $667,498

Objective: Manage the approved budget

Objective: Acquire and deliver cost effective materials, parts, and supplies

Objective: Improve the procurement process


Goal: Exercise fiscal responsibility



FY06 Budget


Support Services: Key Performance Plans and Measures, continued

Treasury


FY04 Actual

FY05 Estimated

FY06 Target

% of bond issues reviewed each quarter for refunding oppor- 100% 100% 100% 100% tunities meeting the targets defined in the debt policy

% of financial statements delivered within time periods 75% 90% 90% 90% specified by covenants

% of insurance statements delivered to equity investors prior 50% 60% 90% 90% to policy expiration dates and within time periods specified by covenants

% of Positive Pay Exceptions resolved within 4 hours 100% 100% 100% 100% of notification

Operating Fund portfolios total return will equal or exceed >1.0 <=1.0 =>1.0 =>1.0 the market weighted composite index of the 91 day T-Bill and the Merrill Lynch 1-3 yr Govt/Corp Index

% of Retirement Applications processed within 30 days 98% 95% 100% 100% of receiving all required documentation

% of 401(k)/457 enrollment/payroll deductions and 100% 95% 100% 100% changes processed within the pay period submitted

% of Health and Welfare and benefit plan premiums 100% 100% 100% 100% paid by established due dates

% of system hours TVM's are out of service each quarter 12% 9% 6% 5%

Objective: Conduct monthly performance monitoring reviews to assess financial performance


FY06 Budget

Strategic Business Units Chief of Staff • VI-43

CHIEF OF STAFF

Organization Chart

Introduction The Chief of Staff includes Administration, Diversity & Economic Opportunity, Community Relations, Labor/Employee Relations, Government & Board Relations, and Policy, Research, & Library Services.

Executive Office, Chief of Staff

The Executive Office of the Chief of Staff oversees key programs and coordinates all areas of Metro, including the implementation of the Chief Executive Officer’s initiatives, with the emphasis of customer focus and a commitment to safety. The Chief of Staff provides the Chief Executive Officer with the resources to manage Metro in a professional manner. The Executive Office also provides policy recommendations, advice, and counsel in the development of strategies and the resolution of complex political, business, and governmental issues. Additionally, the Executive Office directs and executes the strategic mission, vision, and values of Metro, and provides direction toward the achievement of its annual performance goals and objectives.

Administration

Administration is responsible for four essential functions: General Services, Human Resources, Real Estate, and Organizational Development and Training (OD&T). These functions support essential agency-wide activities and projects.

Executive Office, Administration

The Executive Office provides leadership and management oversight of administrative services such as building management and real estate services, human resources, ADA Compliance, and organizational development and training activities, as well as development of agency-wide administrative policies.

General Services

General Services provides Gateway building management, records management, copy and mail services, travel coordination, and rubbish oversight.

Human Resources

Human Resources furnishes administration and guidance on all aspects of personnel management for Metro

GeneralServices

HumanResources

RealEstate

OrganizationalDevelopment& Training

Administration Diversity & EconomicOpportunity

CommunityRelations

Labor/EmployeeRelations

Government& Board Relations

Policy, Research& Library Services

Chiefof Staff


FY06 Budget

VI-44 • Chief of Staff Strategic Business Units

including recruiting and staffing, compensation, job classification, leave programs, and drug and alcohol compliance programs.

Real Estate

This department provides real estate services in the areas of appraisal, environmental investigations, property acquisitions, relocation, property management, and property dispositions.

Organizational Development & Training

OD&T functions as an agency-wide consultant whose purpose is to facilitate and integrate organizational best practices, increase individual and team performance, reduce cycle-times, increase financial and operational effectiveness, and facilitate strategic planning outcomes.

OD&T designs and develops employee and management training programs to enhance knowledge, skills, and abilities to prepare employees for the changing demands of the workplace.

Diversity & Economic Opportunity

The Diversity and Economic Opportunity Department (DEOD) is responsible for developing and implementing Contract Compliance, Small Business Certification, Small Business Outreach, Equal Employment Opportunity, and Labor Compliance programs. The DEOD promotes diversity and economic development in the community through proactive and inclusive monitoring, mentoring, training, and outreach activity. DEOD is responsible for ensuring that decisions affecting employment practices and contracting are made without regard to sex (including sexual orientation), race, color, ancestry, religious creed, national

origin, physical and mental disability, HIV and AIDS, medical conditions (e.g., cancer), age (over 40), marital status, veteran status, or any other status protected by applicable federal or state statutes.

Community Relations

Community Relations is responsible for public liaison activities throughout Los Angeles County to ensure that the transportation plans and objectives of Metro are effectively and expeditiously communicated and implemented in the communities served by the Agency. The department’s staff develops and manages innovative outreach programs in support of Metro’s multifaceted roles in the community – not only as a service operator, but also as property owner and planning and funding agency. Key community relations program support components include construction impact mitigation, bus and rail safety education outreach, and facilitation of community and interjurisdictional issues resolution.

Labor/Employee Relations

Labor/Employee Relations negotiates and administers Metro’s collective bargaining agreements, manages grievances arising out of interpretation and administration of the labor agreements, serves as advocates for Metro management during arbitrations related to labor agreements, provides contract interpretation and due process advice to Metro management, and manages grievances of non-represented employees.

Government & Board Relations

Government Relations is the principal liaison to all federal, state and local elected


FY06 Budget


officials, government agencies, commissions, and their staff. The department develops Metro’s legislative goals and objectives, obtains legislative support, and monitors the legislative process for Metro. Board Relations serves as a liaison between Metro’s Board of Directors and executive management and provides research information and analyses on significant issues to enhance the decision-making process.

Policy, Research & Library Services

Policy, Research & Library Services (PR&LS) develops, catalogues, publishes, and monitors policy, regulations, and procedures promulgated by Metro’s Board of Directors and the Chief Executive Officer. It provides oversight of Board-related matters including the preparation of committee and board reports. Additionally, the department is responsible for agency research, analysis, and process improvements at the direction of the CEO. PR&LS operates Metro’s Research Center, Dorothy Peyton Gray Library, and Archives.

Significant Events in FY06 • Implement mitigation programs for

Gold Line Eastside Extension.

• Streamline processes and focus on essential support of the agency to reduce costs.

• Dispose of surplus property and generate $3.5 million in revenue.

• Restructure Metro’s Community Relations function to improve its effectiveness and management. One-third of managers’ time will be dedicated to Bus Sector support. They will also provide outreach support and coordination for Planning Area Teams and local government liaison while continuing to support capital projects and safety education.

.


FY06 Budget


Chief of Staff Reports


1 Administration 173 165 156 2 Diversity & Economic Opportunity 25 25 22 3 Community Relations 19 19 16 4 Labor/Employee Relations 22 21 19 5 Government & Board Relations 11 10 9 6 Policy, Research & Library Services 6 5 5 7 Executive Office, Chief of Staff 12 9 8 8 Chief of Staff Total FTEs 268 254 235


9 Administration 30,912$ 30,523$ 28,695$ 10 Diversity & Economic Opportunity 2,208 2,195 2,071 11 Community Relations 3,307 2,404 2,371 12 Labor/Employee Relations 2,050 2,207 2,183 13 Government & Board Relations 2,335 1,995 1,962 14 Policy, Research & Library Services 675 698 701 15 Executive Office, Chief of Staff 1,287 2,234 2,014 16 Chief of Staff Total 42,776$ 42,257$ 39,999$


17 Wages & Benefits 26,360$ 21,547$ 21,500$ 18 Services 7,314 8,577 7,721 19 Materials & Supplies 1,015 1,081 777 20 Other Support 7,398 7,458 7,056 21 Acquisitions 656 655 4 22 Equipment 34 2,940 2,940 23 Chief of Staff Total 42,776$ 42,257$ 39,999$


FY06 Budget


Chief of Staff: Key Performance Plans and Measures

General Services

Goal: Develop an effective and efficient workforce FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Percent of safety work orders responded to and completed 100% 100% 100% 100% within 30 minutes of notification

% of public record requests provided in compliance with policies 98% 98% 98% 98%% of staff record requests completed by time requested n/a n/a 98% 98%

Percent of mail distributions completed on-time 97% 97% 97% 98%Percent of internally-generated, tracked packages delivered n/a n/a 98% 100% within 12 hours of pickupPercent of externally-generated packages delivered within six hours n/a n/a 98% 100%Percent of Copy Center jobs delivered on-time 90% 98% 90% 95%

Human Resources

FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Reduce average number of lost work days per person on 179 133 136 122 non-occupational leaves of absence by 10% by June 30, 2006Reduce the average number of calendar days to complete n/a 56 49 45 a dialogue with an applicant/employee requiring a reasonable accommodation

Maintain existing turnover rate at a level of 8% or less n/a 8% 10% 8% (excluding RIFs) throughout FY06 by providing total compensation information to employeesIdentify, project and address the future staffing needs of 25% of n/a n/a n/a 50 Metro's cost centers by June 30, 2006

Increase employee participation in the agency wide rideshare n/a 18% 24% 27% program by 10%Percent of employees that voluntarily resign or retire who return n/a n/a n/a 33% exit questionnaires


Objective: Recruit and select employees to meet job requirements

Objective: Streamline internal processes


Objective: Deliver consistent communication services to each Metro market segment




FY06 Budget


Chief of Staff: Key Performance Plans and Measures, continued

Real Estate

FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Generate approximately $16 million in annual revenue from the $15,265,993 $13,900,000 $15,750,000 $16,000,000 sale and short-term and long term lease of Metro real property assets, and the reimbursement of property management expenses from LADOT, SANBAG, and PBLCA

Organizational Development & Training

FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Client satisfaction rating for Signal Synch classes n/a 4.36 3.50 4.00 (scale: 1=low to 5=high)Signal Technicians completing onsite training n/a 140 300 300Client satisfaction rating for training & development sessions 4.64 4.48 4.15 4.30 (scale: 1=low to 5=high)Cost per training participant $44.85 $46.78 $49.50 $53.35Employees completing formal in-house training 5,684 7,170 4,500 3,000Employees/trainees completing training by non-Metro n/a 112 200 200

personnel, but hosted onsite

Objective: Identify, program, secure and maintain funding for projects, progams and services countywide.

Goal: Provide leadership for the region's mobility agenda.


Objective: Invest in employee development


FY06 Budget


Community Relations

FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Population reached through initiation of national distribution of n/a n/a n/a 3,000,000 CR Rail Safety CDs and videos requested by 20 other Transit Agencies/organizationsNumber of individuals reached through safety presentations n/a 250,000 300,000 1,500,000 and the 3-D mobile theatreNumber of students reached through "On the Move" Education n/a 78,000 79,000 90,000 Outreach Program

Labor/Employee Relations

FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

% of UTU grievances responded to within 45 days of hearing 91% 94% 95% 96%% of ATU grievances responded to within 22 days of hearing 100% 100% 100% 100%% of Injured Worker Advocate to make initial contact within 4 hours n/a 99% 99% 99%

Government & Board Relations

FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Number of meetings with Los Angeles County Congressional 70 88 88 100

Delegation and Key Committee MembersNumber of legislator and aide contacts established through 75 75 75 200

briefings, meetings, and hosting events to communicate Metro's position on legislative matters of interest to the agencyNumber of bi-monthly Policy Analysis Reports produced and 25 25 25 25

distributed to Metro Board members and Executive StaffPercent of Legislative Program implemented 95% 85% 100% 100%

Number of briefings conducted with Board members 24 24 24 25Number of meetings with Southern Cal. Legislative Group, CTA, 12 12 12 30

CTC, and Self-help Counties on transportation-related issuesNumber of meetings with the Metro's Citizens' Advisory Council 25 25 25 25

Executive and Full CommitteesNumber of Regional CEO Meetings attended 6 9 9 9

Number of Mobility-21 Advisory and Executive Committee 22 24 24 24

meetings attended


Objective: Excerise consistent application of the collective bargining


Objective: Deliver consistent communication services to each Metro




FY06 Budget


Chief of Staff: Key Performance Plans and Measures, continued

Policy Research & Library Services

FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Percent of newly-acquired materials catalogued and shelved 85% 100% 100% 100% within 5 days of receipt

Percent of reference and research questions answered within 85% 100% 100% 100% 48 hours

Number of documents per month downloaded from web pages 250 3,374 36,000 24,000 for research needs

Number of items circulated via internal use, check-out, and 1,725 2,242 2,500 3,000 interlibrary loans

Percent of Metro Board adopted policies summarized and n/a 93% 100% 100% published within 30 days of adoption

Diversity & Economic Opportunity

FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Evaluate and establish DBE/SBE/VALP goals on 95% of 90% 100% 100% 100% procurements over $25K for construction , and over $40K for professional services and commodities where subcontracting opportunities exist

FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Receive and review Subcontractors Paid Report (Form 103) 87% 89% 92% 95% submitted by Prime Contractors on 100% of active projects with DBE/SBE goals to monitor Prime Contractors' performance in meeting their small business participation commitment and ensuring compliance with the prompt payment provisions Track 100% of certified payroll reports to identify wage 100% 100% 100% 100% underpayments on Metro Public Works projects per Federal and State prevailing wage regulationsProvide thorough and prompt processing of internal 60 days 78 days 62 days 60 days discrimination complaints within 60 days to increase customer service to Metro employees.Complete 100% of submitted certification applications within 90 60% 88% 90% 100% days of receiving all required documentation per Federal Regulations

Goal: Provide leadership for the region's mobility agenda

Objective: Provide quality planning, technical analysis, and programming




Objective: Develop Integrated Project Tracking System


FY06 Budget


Administration


FY04 Actual

FY05 Estimated

FY06 Target

# of non-operator employees receiving ADA sensitivity training n/a 0 25 100

# of inspections of accessibility features at rail stations n/a 276 150 150

FY03 Actual

FY04 Actual

FY05 Estimated

FY06 Target

Number of non-ADA compliant items identified in the n/a n/a 25 5 Metro/ADA Transition Plan

Number of senior citizens receiving mobility training n/a n/a 500 550

Objective: Improve service quality and capacity for bus and rail systems

Objective: Provide quality planning, technical analysis, and programming

Goal: Provide leadership for the region's mobility agenda


FY06 Budget

VI-52 • Board of Directors Strategic Business Units

BOARD OF DIRECTORS

Organization Chart

Introduction

The Board of Directors establishes policies and authorizes appropriations of Metro. Reporting directly to the Board of Directors are the Chief Executive Officer, Board Secretary, County Counsel, Chief Ethics Officer, and Inspector General.

Chief Executive Officer

The Chief Executive Officer manages Metro, which is the third-largest transportation agency in the United States. The Chief Executive Officer directs the operations of a multi-modal transit system, construction improvements, and regional transportation planning and programming functions.

The Chief Executive Officer works with staff, elected officials, and the community to bring consensus on key projects while at the same time improving the mobility and livability of Los Angeles County. As head of the organization, the Chief Executive Officer’s direct reports include the Chief Planning Officer, Chief Capital Management Officer, Deputy CEO/Chief Operations Officer- Metro Operations, Chief Financial Officer, Chief of Staff, and Chief Communications Officer. These officers’ units support the enterprise-wide

objectives and provide linkages to our employees and stakeholders including our business partners, the unions, and the community.

Board Secretary

The Board Secretary is responsible for coordinating and overseeing Board meeting and Sector Governance Council processes including agendas, minutes, resolutions, and scheduling. The Secretary also oversees the Legal Services function, which is responsible for accepting and processing all legal documents served on LACMTA and its employees.

County Counsel

As general counsel to LACMTA, County Counsel provides legal representation and advice.

County Counsel attorneys attend Board and committee meetings and provide advice on issues of governmental law such as the Brown Act, procurement law, eminent domain, Public Records Act, conflict of interest laws, and federal and state laws relating to transportation.

Chief Executive Officer Board Secretary County Counsel Chief Ethics Officer Inspector General

Board of Directors


FY06 Budget

Strategic Business Units Board of Directors • VI-53

Additionally, County Counsel provides advice and representation on construction matters and employee relations and personnel matters. County Counsel also drafts and reviews contracts, represents the LACMTA in litigation and arbitration, and oversees legal services provided by outside law firms.

Chief Ethics Officer

The Ethics Office advises the Board of Directors, executive management, and staff on ethical, financial disclosure, and conflict of interest issues. It also administers the LACMTA’s Statement of Economic Interest Disclosure and Lobby Registration reporting programs, and conducts ethics training. The Ethics Office also researches state laws and regulations governing campaign contributions, fund raising activities, conflicts of interest, and lobby regulations, and serves as the Agency’s Disadvantaged Business Enterprise Reconsideration Officer.

Inspector General

The Office of Inspector General (OIG), which was created under legislation that also created the LACMTA, reports directly to the Board.

The OIG provides objective reports to the Board of Directors and LACMTA management.

The OIG conducts analyses, evaluations, and appraisals of performance effectiveness as well as of the accuracy of information systems. It is charged with the responsibility to detect, investigate, deter, and prevent fraud, waste, and abuse in Metro programs, operations, and resources.

The OIG also maintains liaison with law enforcement officials, district attorneys, and the U.S. attorney for appropriate referral, coordination, and cooperation in civil or criminal matters.


FY06 Budget

VI-54 • Board of Directors Strategic Business Units

Board of Directors Reports


1 Inspector General 32 24 23 2 Office of Board Secretary 12 12 12 3 Ethics Office 6 6 6 4 County Counsel 5 5 5 5 Chief Executive Office 1 1 1 6 Board of Directors Total FTEs 56 48 47


7 Inspector General 3,174$ 2,893$ 2,908$ 8 Office of Board Secretary 638 1,010 1,102 9 Ethics Office 637 653 668

10 County Counsel 12,982 10,926 18,967 11 Board Office 148 164 151 12 Chief Executive Office 500 481 443 13 Board of Directors Total 18,079$ 16,127$ 24,240$


14 Wages & Benefits 4,969$ 4,460$ 4,981$ 15 Services 12,741 11,287 18,900 16 Materials & Supplies 135 57 57 17 Other Support 225 292 269 18 Acquisitions - - 4 19 Equipment 8 30 30 20 Board of Directors Total 18,079$ 16,127$ 24,240$

VII. Appendix


FY06 Budget

Appendix Appendix 1: Metro Budget Process • VII-1

APPENDIX 1: METRO BUDGET PROCESS

Budget Overview

The annual budget, as adopted by the Board of Directors, is the legal authority to obligate and spend funds. It includes all operating, capital and debt service requirements of the LACMTA for the fiscal year, July 1st to June 30th. The annual budget is comprised of the operating budget, the capital program, subsidies to other agencies, and debt programs.

The operating budget provides a summary of the planned revenues and expenditures for the fiscal year for Metro services and programs including the following:

• All revenue and expenditure/expense assumptions and projections.

• Revenue service hours and miles of bus and rail service.

The operating budget includes Metro Bus and Metro Rail operations, Freeway Service Patrol (FSP), planning activities and projects, property management activities, debt service, and agency administration. The budget is comprised of two funds. The Enterprise fund includes all business-type activities such as bus and rail operations, capital projects, and debt service. The Governmental fund includes activities such as Special Revenue administration, Propositions A and C and TDA administration, and other General fund activities.

The capital budget process has been integrated into the annual budget process. The capital budget includes all capital projects including transit corridor and rail construction projects and the Capital

Program (CP). The CP consists of all activities associated with bus acquisition, bus and rail capital improvements, facility construction and other capital improvements such as information technology enhancements. When the Board of Directors approves a capital project, it authorizes the schedule and total expenditures over the life of the project.

Appropriations for the capital budget are approved on a life-of-project basis and thus do not lapse at the end of the fiscal year. The approach to providing flexible funding over the life of a project authorizes staff to reappropriate unexpended revenues and expenses from the prior year.

Metro includes in its annual budget funds provided for regional programs through grants of local funds or indirectly through allocating federal and state grants to local agencies and transit operators throughout Los Angeles County. Funds are allocated to other governmental agencies in accordance with legislative requirements, Board of Directors policy, or through a competitive awards process known as the Call for Projects (CFP). The Board of Directors approves the projects recommended for funding through the annual budget and the competitive process.

Regional programs funded in the Special Revenue Fund include capital and operating allocations to municipal bus operators, direct disbursements to Los Angeles County municipalities for transportation programs, and services for


FY06 Budget

VII-2 • Appendix 1: Metro Budget Process Appendix

disabled persons provided by Access Services, Inc. (ASI).

Metro’s financial records reflect only those funds that are actually received and directly disbursed by Metro.

Budget Workflow

In accordance with the Financial Standards, the annual budget is adopted before July 1st to define the legal level of expenditures/expenses for the fiscal year. Budgeting for the fiscal year is divided into four phases: (1) budget formulation and preparation, (2) budget reviews, (3) budget adoption, and (4) budget implementation.

Budget Formulation and Preparation

• Initial planning, development of assumptions, preparation of instructions and training materials began in January after a mid-year review of the FY05 budget.

• FY06 budget kickoff meetings were held with departments in early February 2005.

• Budget system training classes were held in February 2005.

• Preparation of the FY06 budget began in February 2005 with departments developing expense and labor requests that were submitted to their Executive Officers for approval before submittal to the Office of Management and Budget (OMB) in March.

• Capital Program expense and labor requests were submitted by departments to the assigned Project Manager for approval prior to being included in the department’s budget request to their Executive Officer.

Budget Reviews

• The Capital Program was developed concurrently with the annual operating budget. Recommendations for the update to the Capital Program were reviewed with Executive Management in January 2005.

• Project and department level reviews of budget requests were completed in March 2005.

Budget Adoption

• A workshop was held for the Board of Directors on May 9, 2005.

• The budget document was released to the Board of Directors and public on May 4, 2005.

• The public hearing was held on May 19, 2005, in conjunction with the Finance and Budget Committee meeting.

• The annual budget and the Capital Program are planned for adoption at the May 26, 2005, meeting of the Board of Directors.

Budget Implementation

• The FY06 Budget will be implemented on July 1, 2005.

• Periodic financial reports are prepared to enable management to monitor and control the budget.

• Quarterly financial reports are prepared by Finance and presented by the Chief Financial Officer to the Board of Directors. These reports monitor financial performance and ensure compliance with approved budget.


FY06 Budget


Budget Basis

The LACMTA is a single entity for budgeting and accounting purposes. Annual budgets are adopted on a basis consistent with Generally Accepted Accounting Principles (GAAP) for all governmental and proprietary funds, except that depreciation and amortization are not budgeted. The Governmental Accounting Standards Board (GASB) defines a fund as a “fiscal and accounting entity with a self-balancing set of accounts that are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations.”

Funds are classified and budgeted into three categories: governmental, proprietary, and fiduciary. Governmental includes the General and Special Revenue funds. The proprietary category includes the Enterprise fund. The fiduciary fund category includes agency funds for the Benefit Assessment Districts (BADs). All governmental funds are accounted for using the modified accrual basis of accounting, meaning that revenue is recognized when it is both measurable and available. The proprietary and fiduciary funds use the accrual basis of accounting in which revenue is recognized when it is earned or received.

Metro uses Special Revenue funds to account for those funds that are restricted by purpose and use. The Special Revenue fund reflects Metro’s responsibility to administer special transportation programs as well as its duty to allocate transportation funds to local and regional agencies throughout Los Angeles County.

In addition, Metro is responsible for acting as a trustee for certain funds, such as pension trust funds and restricted agency funds, which are held by Metro as an agent for individuals, private organizations, or other funds. Metro uses fiduciary funds to account for these assets. BAD funds are trustee funds that Metro collects and serves as the trustee for debt payment. The outstanding debt is an obligation of the Benefit Assessment District; Metro administers the program through the collection of taxes from property owners and payments to bondholders.

Metro also receives and disburses Regional EZ Pass monies. Regional EZ Pass is regional fare media good for passage on participating regional transit providers. All Regional EZ Pass revenues are sent to Metro, which distributes them to the transit providers.

Service Authority for Freeway Emergencies (SAFE) administers the Los Angeles County Call Box program, which coordinates emergency services to motorists on freeways. SAFE is an independent financial entity. SAFE funding is derived from the $1 fee collected on California annual vehicle registrations.

Budget Policies and Procedures

The annual budget is developed on the basis of the combination of two budget methodologies. Continuation level budgeting is used to develop the funding and resources necessary to sustain critical operating, special programs and previously approved capital projects. The agency uses the zero-based budgeting methodology to determine resources for new programs and capital projects as well


FY06 Budget


as general and administrative expenses. Metro’s chart of accounts is reviewed and supplemented on an as-needed basis.

In accordance with the Financial Standards, the Finance unit monitors revenues and budget expenditures throughout the fiscal year.

For all Metro accounting funds, budgetary oversight and control is attained through checking available funds for non-labor transactions. Available funds are identified as unspent and unencumbered. Available funds are verified for a department and project by monitoring combined budget totals for non-labor account categories or for individual acquisition-related accounts.

Budget Amendments

Budget detail is a management plan for financial activity and is prepared at the fund, project, department and account level. The legal level of control is at the fund level.

Total expenditures cannot exceed the final appropriation adopted by the Board, with the exception of unspent capital funds from the preceding year. During the fiscal year, changes in law, economic conditions and emergencies can have an impact on budget authority. Spending authority may be increased or decreased throughout the fiscal year as unanticipated situations arise. Management may make revisions within operational and project budgets only when there is no net dollar impact to the total appropriations at the fund level. As such, the Chief Executive Officer can approve administrative revisions to the financial plan if changes are consistent with the appropriation by fund.

The LACMTA’s source of authority to make changes is rooted in disclosure on financial policy as stated in LACMTA’s Comprehensive Annual Financial Report (CAFR) where reference to the legal level of authority is at the fund level so that staff has the ability to make changes within that legal authority.

Capital Program Budget

The Capital Program (CP) budget is adopted on a life-of-project basis. Thus annual re-appropriations are not required. Changes to the life-of-project budget must be approved by the Board. The CP budget process was completed as part of the FY06 budget process. Project managers analyze the status of their funded projects (reforecasting schedules, costs, etc.). Estimates for the work to be completed in the current fiscal year impacts the life-of-project budget. Project managers submit new projects for consideration through the CP budget process in the second quarter of the current fiscal year.

The CP budget process:

• determines which prior year projects will not be completed as scheduled in the current fiscal year,

• identifies new requirements or projects since the adoption of the prior CP, including changes to the life-of-project budget,

• defines project costs in terms of labor and non-labor costs,

• authorizes capital projects and associated funding plans, and

• estimates the operating impact of the capital investment (including cost increases).


FY06 Budget


The CP is developed based on project rankings, project readiness, available agency resources, and funding. Project managers gather project information (current and new projects) and submit the information to OMB in the second quarter of FY05. OMB compiles the information and disseminates the information to Element Sponsors (department executive officers, directors, etc.). Element Sponsors review and rank projects, then compile a list of proposed projects for the next fiscal year.

OMB assembles the proposed project lists and submits the list to Executive Management. Executive Management reviews the list of recommended capital projects and further prioritizes the projects to match available revenues. OMB submits the approved CP to the LACMTA Board of Directors for review and adoption in the fourth quarter of FY05 as part of the FY06 budget process.


FY06 Budget


Agency-wideBudget Kick-Off

MeetingFebruary 8

Budget Sys temOpens For BudgetRequest Data Entry

February 1 4

Budget SystemCloses For Budg etRequest Data Entry

March 2

Key P erformanceIndicators (KPI)

DueMarch 11

Budget BookDis tribution

April 26 - May 4

Budg et WorkshopFo r Board Of

Direc torsMay 9

Propo sed BudgetPublic Hearing

May 1 9

Budget AdoptionBy The Board Of

DirectorsMay 26

FY06 BudgetImplementatio n

July 1

Metro FY06 Budget Development Schedule

September 20 04

February 200 5

March 200 5

April 2005

May 2005

July 2005

Funding AllocationApril 11 - 15

Incorporate CapitalProgram Into

Annual BudgetFebruary 7 - 1 1

Capital P rogramKick -Off Meeting

September 8

Capital Pro gramCall Opens

September 22

Capital P rogramCall ClosesOctober 24

October 200 4

Capital P rogramPropo sal

Reco mmendationJanuary 25

January 200 5

Key events and dates in the budget development cycle


FY06 Budget

Appendix Appendix 2: Financial Standards Policy • VII-7

APPENDIX 2: FINANCIAL STANDARDS POLICY

Policy Statement

The Board shall review and approve a set of Financial Standards each year as part of the annual budget and financial planning process.

Purpose

The Financial Standards shall be divided into three sections:

General Financial Standards - The purpose of the general standards is to ensure that Metro prudently manages its financial affairs and establishes appropriate cash reserves to be able to meet its future financial commitments.

Debt Financial Standards - The purpose of the Debt Standards is to limit the level of debt that may be incurred and to ensure that debt assumptions used in financial planning are based on financial parameters similar to or more conservative than those that would be placed on Metro by the financial marketplace. These standards will be consistent with the Board-approved Debt Policy.

Business Planning Parameters - The purpose of the Business Planning Parameters is to provide management with a framework for developing the following year’s budget and other Metro financial plans and establishes future business targets for management to achieve.

Application

This policy applies to all Metro financial plans.

1.0 Procedures

1.1 The Management Team will review each of the Financial Standards areas annually.

1.2 Metro’s performance against the Financial Standards shall be measured and reported to the CEO throughout the year on a regular cycle.

1.3 At least annually, a mid-term report of Metro’s financial and programmatic performance will be presented to the Board.

1.4 The Financial Standards may be amended or waived by the Board on a case-by-case basis.

2.0 Definition of Terms

2.1 Financial Plan – Any plan, denominated in financial terms, that represents Metro’s official intentions to external parties, including other levels of government and their agencies, stakeholders, business partners and customers of the transportation system in Los Angeles County.

2.2 CEO – Metro’s chief executive officer or designee.

2.3 Management Team – Appointed by the CEO.

2.4 Budget – The financial plan that summarizes Metro’s intentions during a fiscal year.


FY06 Budget

VII-8 • Appendix 2: Financial Standards Policy Appendix

2.5 Capital Program – The financial plan that details Metro’s investment in its own assets over a five-year period. The Capital Program is updated and included in each year’s budget. The current year’s expenditures are appropriated within the budget.

3.0 Responsibilities

3.1 OMB shall be responsible for conducting the periodic performance reviews required under this policy.

3.2 Based on inputs from all units of Metro, OMB shall be responsible for presenting the updated financial standards to the Board for review and approval.

4.0 Flowchart

Not applicable.

5.0 Reference

5.1 LACMTA Debt Policy 5.2 LACMTA Investment Policy

6.0 Attachments None.

7.0 Procedure History

7.1 Initial Action – February 2002

Adoption of this policy supersedes the following previously adopted policies that are subsumed by FIN 25 or are procedural in nature and will be administered under the authority of the CEO: Fin 1 Fiscal Policies (General)

Fin 2 Budget Preparation and Approval

Fin 3 Budgetary Controls

Fin 4 Budget Amendments and Adjustments

Fin 5 Fiscal Monitoring & Reporting

Fin 6 Funds Programmed to Other Agencies

Fin 7 Contingency Fund Fin 8 Chart of Accounts Fin 9 Revenue Policies


FY06 Budget

Appendix Appendix 3: LACMTA FY05-06 Financial Standards • VII-9

APPENDIX 3: LACMTA FY05-06 FINANCIAL STANDARDS

The Financial Standards are divided into three sections: General, Debt, and Business Planning Parameters. The purpose of the General standards is to ensure that LACMTA prudently manages its financial affairs and establishes appropriate cash reserves. The purpose of the Debt standards is to limit the level of debt that may be incurred and to ensure that debt assumptions are based on financial parameters similar to or more conservative than those that would be placed on LACMTA by the financial marketplace. Actual debt covenants may differ from these standards. In accordance with the Debt Policy, where this occurs, the actual covenants will be disclosed in the Board report supporting the debt issuance. The Business Planning Parameters provide management with a framework for developing the following year’s budget and other longer range financial plans and establishing future business targets for management to achieve.

Financial Standards – General

G1. Complete and accurate accounting records shall be maintained in accordance with Generally Accepted Accounting Principles as promulgated by the Government Accounting Standards Board. The fiscal year-end for financial reporting purposes shall be June 30.

G2. An independent certified public accounting firm shall perform an examination of LACMTA’s consolidated financial statements (including Single Audit requirements) and retirement plan

financial statements on an annual basis. The goal is to receive an unqualified opinion on the financial statements and an opinion that LACMTA is in compliance with Federal Single Audit requirements in all material respects and to receive the Government Finance Officers Association (GFOA) award for excellence in financial reporting.

G3. Funds shall be invested within the guidelines of the Board’s approved Investment Policy and in compliance with applicable State law, California Government Code Section 53600 et seq.

In accordance with the Investment Policy, the Board shall approve the Financial Institutions Resolution that designates the LACMTA Officials empowered to open, close, or authorize changes to accounts and authorizes LACMTA Officials to designate individuals as Official Signatories for financial accounts.

G4. An annual actuarial analysis shall be performed on all LACMTA self-administered retirement plans. The LACMTA shall make annual contributions that, when combined with employee contributions, fund actuarially computed costs as they accrue.

G5. Appropriate insurance coverage shall be maintained to mitigate the risk of material loss. For self-insured retentions, the LACMTA shall record the liabilities,


FY06 Budget

VII-10 • Appendix 3: LACMTA FY05-06 Financial Standards Appendix

including losses incurred but not reported, at 100% of the net present value.

The goal is to maintain restricted cash balances in amounts equal to the present value estimated liabilities but in no event less than the next year’s projected cash outflows. An actuarial review of self-insured liabilities will be made annually.

G6. Since sales taxes are received on a monthly basis, the allocations among the various ordinance categories shall also be recorded monthly.

Expenditures against appropriations are limited to cash actually on hand during the fiscal year.

G7. Sales tax collections received during a fiscal year that are in excess of the sales tax budget for that year shall be reported as unreserved, designated fund balances in the Special Revenue Fund. Excess Local Return monies are disbursed when received. Any other excess balances may only be expended pursuant to Board authorization. Such funds are generally available for appropriation in the subsequent budget cycle in accordance with their ordinance designations.

G8. The fiscal year shall end on June 30 of each year. By January of each fiscal year, the Board should review and approve a set of Financial Standards that can be used by

management as a framework for developing the following year’s Budget. The Board shall approve the Budget by June 30 of each fiscal year.

G9. The annual budget establishes the legal level of appropriation. The budget shall include operating, capital, regional funding and other components necessary to implement the policy directions contained in previously board adopted longer-term plans, i.e., Long Range Transportation Plan (LRTP) and Short Range Transit Plan (SRTP). Appropriations for the operating budget lapse at the end of one year. Appropriations for the capital and regional funding budgets are approved on a life-of-project basis. The budget shall be prepared in a fashion to clearly describe the projects and programs contained therein and to receive the GFOA award for excellence in budgetary presentation.

G10. The LACMTA shall adopt a long-range (covering at least 20 years) transportation plan for Los Angeles County at least once every five years. For interim years, staff will report on changes affecting the major financial assumptions of the plan and progress toward the implementation of new projects and programs. The plan update report shall also highlight Board approved actions taken during the interim period that affect the plan outcomes or schedules.

G11. Annually, the LACMTA shall adopt a five-year (short-range) transportation plan (SRTP) for Los


FY06 Budget


Angeles County. The plan will include service levels and ridership by mode for each of the years. The five-year plan will also identify the capital investment needs to support the existing regional system and regional service expansion.

The plan will also identify key performance indicators by which to measure accomplishment of the plan’s goals.

G12. The LACMTA shall maintain a cost-effective system of internal control to adequately safeguard assets. In assessing the internal control system, management must weigh the cost of control against the expected benefit to be derived from its implementation.

Management will develop a risk assessment and an audit plan each year simultaneously with the adoption of the annual budget. The Board’s Executive Management and Audit Committee (EMAC), as the audit committee for Metro, will provide input and approve the audit plan. Furthermore, completed audits will be submitted to the Chief Executive Officer and to the Board through EMAC.

Recommendations for improvements to the system of internal controls are requirements of the various regularly scheduled and specifically directed audits that are performed in accordance with generally accepted governmental auditing standards. These recommendations, management’s action plans, and progress toward

implementation will be reported to EMAC on a regular basis.

Financial Standards - Business Planning Parameters

B1. Sales tax revenue forecasts shall be based on the 20-year historical growth in Los Angeles county taxable sales, which is currently 4.1%.

B2. Passenger revenue forecasts shall be derived from historical actual revenues. During periods affected by actual or proposed fare structure changes, the impacts on ridership and average fare forecasts shall be estimated conservatively.

The Board will review and update the fare policy on a regular cycle, at least each 5th year since prior review and approval. From time to time, management may propose fare modifications to achieve transit ridership improvements and subsidy per passenger targets (see B4) and to maintain financial viability.

B3. It is our long-term strategy to maintain a reasonable subsidy per passenger ratio (operating expenses, excluding depreciation, minus operating revenues divided by passenger boardings). However, with the additional consent decree costs with no corresponding increase in passengers, subsidy per passenger has grown as follows:


FY06 Budget


Subsidy Per Passenger

FY02 Actual $1.43

FY03 Actual $1.55

FY04 Actual $1.75

FY05 Budget $1.56

FY05 Projected $1.64

FY06 Projected $1.69

B4. The Board desires to steadily improve service efficiency over time. For LACMTA operated bus and rail service, cost per revenue vehicle service hour (measured separately for bus and rail) may not increase by more than the projected rate of inflation for the Los Angeles area plus the incremental costs associated with the addition of new services, programs, and/or facilities as approved by the Board.

The projected incremental cost impact on cost per revenue vehicle service hour of new services, programs, and/or facilities shall be presented to the Board for approval as part of the annual update of the SRTP each year.

B5. Service planning assumptions for bus operations will be based upon demonstrated needs as defined through the 5-Year Short Range Plan.

B6. Staffing for FY06, measured in FTE’s, will be held at or below the FY05 level adjusted for service

expansion or other new scope that has been approved by the Board.

B7. Regional programs such as local return, formula allocation procedure and Call for Projects shall be funded according to the terms of the laws, regulations and/or discretionary procedures approved by the Board.

B8. The capital plan covers LACMTA’s assets including major transportation infrastructure projects, i.e., BRT, LRT, bus maintenance facilities, and is included in each annual budget. The capital plan shall include funding for asset replacement and expansion projects. Capital projects in excess of $5 million shall be presented separately for life-of-project approval by the Board. Capital projects with life-of-project budget changes that cause the project to exceed $1 million, or for which the change exceeds $1 million, shall be presented to the Board for approval.

B9. LACMTA applies for and receives discretionary federal and state funding. Discretionary funding shall be requested for major system expansion projects or extraordinary transit capital needs. (e.g., Bus Rapid Transit, Light Rail Transit or new bus maintenance facilities). Discretionary funding levels shall be estimated by project based on appropriate state and federal criteria and the likelihood of obtaining approvals.

The Board shall approve all discretionary state and federal


FY06 Budget


funding requests by project or program each year.

B10. Prop A and C administrative funds are appropriated through the annual budget from the Special Revenue Fund to the General Fund to pay for activities not required to be accounted for in other funds. The following statements provide guidance for appropriation and use of Prop A and C administrative funds.

Appropriation

Based on past practice, up to 5% of Prop A may be appropriated for administrative purposes.

The Prop C ordinance allows up to 1.5% to be appropriated for administrative purposes.

Administrative funds are transferred from the Special Revenue Fund to the General Fund as received, limited to the lesser of appropriations or actual sales taxes received.

Administrative funds must be expended or encumbered within one year after the end of the year of appropriation. Lapsing is accounted for on the first-in, first-out basis. Lapsed Administrative funds, if any, are returned to the Special Revenue Fund at the end of each year for re-appropriation through the next budget process.

Eligible Uses

Administrative activities include the planning, management, execution, use and conduct of the projects and programs funded by Prop A and C funds. Administrative funds may not be used for

operating or building the transit system or regional programs that are operations-related.

Examples, not an all-inclusive listing, of eligible uses of administrative funds:

• Indirect costs that are not allowable under federal guidelines, OMB Circular. A-87, i.e., lobbying, interest expense, bad debt expense, cost of general governance.

• Indirect costs that LACMTA elects not to allocate through its annual FTA approved cost allocation plan (CAP) because to do so might burden projects or programs in an inequitable manner.

• Development of planning and programming documents required by federal and state regulations and Board policy.

• Activities that benefit LACMTA projects and programs indirectly such as internships, career development, training programs, etc.

• Transportation planning activities including bus, rail, highway and other surface transportation modes.

• Consent decree oversight.

The proposed expenditure programs for these activities will be shown in detail in the annual budget. Actual expenditures will be shown in the comprehensive annual financial report.

Financial Standards - Debt

D1. LACMTA may not enter into a debt or financing arrangement unless the transaction is in full compliance with all applicable provisions of applicable state and federal laws and the Debt Policy.


FY06 Budget


D2. Long-term debt may be included in the budget or longer range plans; however, no such debt shall be incurred without the specific approval of the Board.

D3. Reserved.

D4. The average life of debt instruments shall not exceed the average useful lives of the assets financed.

D5. Reserve funds that may be required by the financial markets for each debt issuance shall be maintained. Cash and securities, insurance or surety bonds may fund these reserves. For financial planning purposes, reserve requirements shall be included in the par amount of debt issued.

D6. LACMTA shall maintain a legal security structure of liens, agreements, pledged revenues, and other covenants which will be sufficient to secure rating of "A" or better on sales tax backed securities and secure A1 or P1 rating on other short-term debt, and, if necessary, to secure credit enhancement from financial institution with a rating of "AA" or better.

D7. Debt service coverage ratio minimums by sales tax ordinance categories are shown in the Debt Policy. For financial planning purposes, those ratios shall not be exceeded in the development of longer-term financial plans.


FY06 Budget



APPENDIX 4: LACMTA FY06 Debt Service Schedule Budgeted Debt Principal Adjustments

Initial Principal Balance Interim Commercial New New Commer. Paper Principal Pmt AccretedTransaction Name PAR Value As of 6/30/05 Paper Financing Financing Financing Cost Refunding FY06 Interest

1 1991-B Refunding 281,425,000 65,510,000 - - - - - - 2 1992-A Refunding 98,700,000 98,700,000 - - - - 16,200,000 - 3 1996-A New Money 110,580,000 10,170,000 - - - - 2,350,000 - 4 1997-A Refunding 256,870,000 227,905,000 - - - - 4,015,000 - 5 1999-A Forward Refunding 160,205,000 154,555,000 - - - - 6,965,000 - 6 1999-B New Money 150,340,000 115,255,000 - - - - 2,565,000 - 7 1999-C Refunding 170,495,000 168,820,000 - - - - 465,000 - 8 2001-A New Money 55,685,000 52,770,000 - - - - 1,050,000 - 9 2001-B Refunding 191,215,000 185,550,000 - - - - 5,505,000 -

10 2003-A Forward Refunding 273,505,000 261,955,000 - - - - 11,530,000 - 11 2003-B Refunding 243,795,000 243,795,000 - - - - - - 12 2005-A New Money 248,335,000 - - 244,943,903 3,391,097 - - - 13 1990-A Lease Rev. (CBL) 26,400,000 4,862,000 - - - - 2,530,000 - 14 1990-A Yen Obligation (CBL) 6,600,000 3,424,055 - - - - 254,253 - 15 1996 Refunding 104,715,000 16,235,000 - - - - 2,195,000 - 16 Tax-Exempt Commercial Paper 350,000,000 122,945,247 - 20,200,000 - - - - 17 Prop A Debt Sub-Total 2,728,865,000 1,732,451,302 - 265,143,903 3,391,097 - 55,624,253 - 18 19 1992-A New Money 516,855,000 37,980,000 - - - - 11,890,000 - 20 1993-A Refunding 204,095,000 197,835,000 - - - - 1,060,000 - 21 1995-A New Money 250,000,000 25,830,000 - - - - 5,915,000 - 22 1998-A Refunding 219,710,000 219,710,000 - - - - - - 23 1999-A New Money 124,805,000 114,070,000 - - - - 2,620,000 - 24 2000-A New Money 161,995,000 151,370,000 - - - - 2,960,000 - 25 2003-A Refunding 94,840,000 86,270,000 - - - - 8,650,000 - 26 2003-B Refunding 170,775,000 168,775,000 - - - - 350,000 - 27 2003-C Refunding 221,850,000 218,000,000 - - - - 1,550,000 - 28 2004-A New Money 176,345,000 176,345,000 - - - - 2,105,000 - 29 Taxable Commercial Paper 150,000,000 77,609,000 30,800,000 - - - - - 30 Local Allocation -- City of Los Angeles 21,700,000 8,680,000 - - - - 2,170,000 - 31 Prop C Debt Sub-Total 2,312,970,000 1,482,474,000 30,800,000 - - - 39,270,000 - 32 33 2000 Breda Lease (Norwest) 64,882,355 53,886,471 - - - - 2,124,855 - 34 2000 Breda Lease (CIBC) 13,780,433 11,989,073 - - - - 464,404 - 35 2000 Breda Lease (Comerica) 87,396,529 72,619,633 - - - - 2,853,222 - 36 2001 Agilent Lease 264,054,348 31,092,373 - - - - - - 37 2001 Comerica Lease 75,742,288 76,172,257 - - - - 3,263,595 5,425,337 38 2002 Textron Lease 114,779,263 18,448,809 - - - - - 1,136,836 39 2002 Philip Morris Lease 384,088,739 414,713,157 - - - - 102,743,966 21,165,339 40 2002 First Hawaiian Lease 65,774,837 73,132,493 - - - - 2,535,893 4,677,326 41 2003 Fleet Lease 89,632,800 97,290,348 - - - - 2,657,631 6,269,421 42 Capitalized Leases 64,104,779 26,557,881 - - - - 8,926,002 - 43 Debt Overhead Costs - - - - - - - - 44 Other Debt Sub-Total 1,224,236,372 875,902,494 - - - - 125,569,568 38,674,259 45 46 2005 Capital Grant 250,000,000 - - 246,372,277 3,627,723 - - 47 Grant Revenue Debt Sub-Total 250,000,000 - - 246,372,277 3,627,723 - - - 48 49 2003 Workers Comp 88,485,000 76,085,000 - - - - 11,980,000 - 50 1996-A Refunding (USG) 185,735,000 - - - - - - - 51 2004-A Refunding (USG) 197,050,000 197,050,000 - - - - 4,925,000 - 52 General Revenue Debt Sub-Total 471,270,000 273,135,000 - - - - 16,905,000 - 53

54 Enterprise Fund Debt Total 6,987,341,372 4,363,962,796 30,800,000 511,516,181 7,018,819 - 237,368,821 38,674,259 55 56 1993-A CRA Housing 9,454,406 8,889,301 - - - - 209,534 - 57 2002-A CRA Redevelopment Refunding 20,920,000 20,125,000 - - - - 550,000 - 58 Prop A General Fund Debt Sub-Total 30,374,406 29,014,301 - - - - 759,534 - 59

60 MTA Debt Total 7,017,715,777 4,392,977,097 30,800,000 511,516,181 7,018,819 - 238,128,355 38,674,259

61 62 1992-A Bnft Assmt. Dist. A1 154,055,000 53,390,000 - - - - 16,710,000 - 63 2001-A Bnft Assmt. Dist. A1 Refunding 42,465,000 41,905,000 - - - - 170,000 - 64 2001-A Bnft Assmt. Dist. A2 Refunding 6,705,000 5,115,000 - - - - 955,000 - 65 Agency Fund Sub-Total 203,225,000 100,410,000 - - - - 17,835,000 -

66 67 Total 7,220,940,777 4,493,387,097 30,800,000 511,516,181 7,018,819 - 255,963,355 38,674,259

Footnotes1 - Capital needs of $57 million for Prop A will be financed with long-term bonds in FY06. Long-term bonds will also be issued to retire approximately $198 million of outstanding commercial paper. An additional $51 million of Prop C capital needs will be financed with tax-exempt commercial paper. Metro will issue approximately $250 million of Capital Grant Revenue Bonds to fund capital costs associated with the Metro Gold Line Eastside Extrension.2 - A portion of Prop A 40% Discretionary Sales Tax Revenue is pledged to fund debt service for these bonds. The debt service is to be reimbursed from net revenues of the project.

VII-16 • Appendix 4: LACMTA FY06 Debt Service Schedule Appendix


Principal Bal. Total D/S Total D/S Enterprise General Agency Foot-as of 6/30/06 Principal Interest P&I Misc. Fees* Expense Fund Fund Fund notes

1 65,510,000 - 4,258,150 4,258,150 16,000 4,274,150 4,274,150 - - 2 82,500,000 16,200,000 4,834,500 21,034,500 396,000 21,430,500 21,430,500 - - 3 7,820,000 2,350,000 422,555 2,772,555 9,500 2,782,055 2,782,055 - - 4 223,890,000 4,015,000 12,070,350 16,085,350 9,500 16,094,850 16,094,850 - - 5 147,590,000 6,965,000 7,505,663 14,470,663 9,500 14,480,163 14,480,163 - - 6 112,690,000 2,565,000 5,429,961 7,994,961 9,500 8,004,461 8,004,461 - - 7 168,355,000 465,000 8,312,523 8,777,523 9,500 8,787,023 8,787,023 - - 8 51,720,000 1,050,000 2,464,184 3,514,184 9,500 3,523,684 3,523,684 - - 9 180,045,000 5,505,000 9,421,175 14,926,175 9,500 14,935,675 14,935,675 - -

10 250,425,000 11,530,000 11,198,444 22,728,444 (1,078,919) 21,649,525 21,649,525 - - 11 243,795,000 - 11,308,950 11,308,950 (926,797) 10,382,153 10,382,153 - - 12 248,335,000 - 11,239,992 11,239,992 113,037 11,353,029 11,353,029 - - 1 13 2,332,000 2,530,000 312,356 2,842,356 9,500 2,851,856 2,851,856 - - 14 3,169,802 254,253 166,604 420,857 - 420,857 420,857 - - 15 14,040,000 2,195,000 777,181 2,972,181 9,500 2,981,681 2,981,681 - - 16 143,145,247 - 5,010,084 5,010,084 972,000 5,982,084 5,982,084 - - 1,317 1,945,362,049 55,624,253 94,732,670 150,356,923 (423,179) 149,933,744 149,933,744 - - 18 19 26,090,000 11,890,000 1,683,210 13,573,210 9,500 13,582,710 13,582,710 - - 20 196,775,000 1,060,000 10,143,751 11,203,751 704,500 11,908,251 11,908,251 - - 21 19,915,000 5,915,000 1,174,985 7,089,985 9,500 7,099,485 7,099,485 - - 22 219,710,000 - 11,234,875 11,234,875 9,500 11,244,375 11,244,375 - - 23 111,450,000 2,620,000 5,245,888 7,865,888 9,500 7,875,388 7,875,388 - - 24 148,410,000 2,960,000 7,631,425 10,591,425 9,500 10,600,925 10,600,925 - - 25 77,620,000 8,650,000 3,912,988 12,562,988 (674,187) 11,888,801 11,888,801 - - 26 168,425,000 350,000 6,002,667 6,352,667 573,635 6,926,302 6,926,302 - - 27 216,450,000 1,550,000 7,580,079 9,130,079 664,277 9,794,356 9,794,356 - - 28 174,240,000 2,105,000 8,371,793 10,476,793 (174,637) 10,302,156 10,302,156 29 108,409,000 - 4,878,405 4,878,405 481,500 5,359,905 5,359,905 - - 1,430 6,510,000 2,170,000 275,048 2,445,048 - 2,445,048 2,445,048 - - 31 1,474,004,000 39,270,000 68,135,113 107,405,113 1,622,588 109,027,701 109,027,701 - - 32 33 51,761,616 2,124,855 1,115,943 3,240,798 - 3,240,798 3,240,798 - - 34 11,524,670 464,404 208,988 673,392 - 673,392 673,392 - - 35 69,766,410 2,853,222 1,506,004 4,359,227 - 4,359,227 4,359,227 - - 36 31,092,373 - - - - - - - - 37 78,334,000 3,263,595 - 3,263,595 - 3,263,595 3,263,595 - - 38 19,585,645 - - - - - - - - 39 333,134,530 102,743,966 102,743,966 - 102,743,966 102,743,966 - - 40 75,273,926 2,535,893 2,535,893 - 2,535,893 2,535,893 - - 41 100,902,137 2,657,631 2,657,631 - 2,657,631 2,657,631 - - 42 17,631,879 8,926,002 1,594,772 10,520,774 - 10,520,774 10,520,774 - - 43 - - - - 857,000 857,000 857,000 - - 44 789,007,186 125,569,568 4,425,707 129,995,275 857,000 130,852,275 130,852,275 - - 45 46 250,000,000 - 1,526,227 1,526,227 453,465 1,979,692 1,979,692 - - 1 47 250,000,000 - 1,526,227 1,526,227 453,465 1,979,692 1,979,692 - - 48 49 64,105,000 11,980,000 2,408,747 14,388,747 146,402 14,535,149 14,535,149 - - 50 - - - - 505,215 505,215 505,215 - - - 51 192,125,000 4,925,000 6,726,296 11,651,296 613,009 12,264,305 12,264,305 - - 6 52 256,230,000 16,905,000 9,135,043 26,040,043 1,264,626 27,304,669 27,304,669 53

54 4,714,603,235 237,368,821 177,954,761 415,323,582 3,774,500 419,098,081 419,098,081 - - 55 56 8,679,767 209,534 511,613 721,147 9,500 730,647 - 730,647 - 2 57 19,575,000 550,000 995,839 1,545,839 9,500 1,555,339 - 1,555,339 - 2 58 28,254,767 759,534 1,507,451 2,266,985 19,000 2,285,985 - 2,285,985 - 59

60 4,742,858,001 238,128,355 179,462,212 417,590,567 3,793,500 421,384,067 419,098,081 2,285,985 -

61 62 36,680,000 16,710,000 2,626,758 19,336,758 174,157 19,510,915 - - 19,510,915 5 63 41,735,000 170,000 1,619,825 1,789,825 79,167 1,868,992 - - 1,868,992 5 64 4,160,000 955,000 175,783 1,130,783 12,898 1,143,681 - - 1,143,681 5 65 82,575,000 17,835,000 4,422,365 22,257,365 266,222 22,523,587 - - 22,523,587

66 67 4,825,433,001 255,963,355 183,884,577 439,847,932 4,059,722 443,907,654 419,098,081 2,285,985 22,523,587

3 - Interest expense is calculated using a 3.5% interest rate.4 - Interest expense is calculated using a 4.5% interest rate.5 - The Benefit Assessment District debt service is solely an obligation of the respective Districts and is paid from assessments levied within each district.6 - Debt service for the 2004 Union Station Gateway bonds is treated as rent and is reimbursed to the Enterprise Fund through the overhead allocation process.* Includes amortized issuance costs, bond discounts & premiums.

Appendix Appendix 4: LACMTA FY06 Debt Service Schedule • VII-17



FY06 Budget


Proposition A Sales Tax Revenue Debt Affordability Targets

Category Allowable Uses & Status Debt Policy Maximum

Prop A Rail 35% Rail Operations & Capital. Is currently committed to debt service in an amount close to the Policy Maximum.

87% of Prop A 35% Rail revenues.

Discretionary 40% Any transit purpose. Is currently committed to bus operating, capital, and paratransit subsidies.

Local Return 25% Any transit purpose. Distributed to localities based on population.

N/A

Tests for Issuance of Additional Bonds:

First Tier Senior Prop A Bonds. For 12 consecutive months out of the 15 consecutive months immediately preceding the issuance of new bonds, 35% of Prop A revenues collected must equal at least 115% of maximum annual debt service for all First Tier Senior Prop A Bonds that will be outstanding immediately following the issuance of the new bonds.

First Tier Second Senior Prop A Bonds.

For 12 consecutive months out of the 15 consecutive months immediately preceding the issuance of new bonds, 75% of all Prop A revenues collected must equal at least 115% of maximum annual debt service for all First Tier Second Senior Prop A Bonds that will be outstanding immediately following the issuance of the new bonds.

Second Tier Prop A Bonds.

For 12 consecutive months out of the 15 consecutive months immediately preceding the issuance of new bonds, 75% of all Prop A revenues collected must equal at least 115% of maximum annual debt service for all Prop A Bonds that will be outstanding immediately following the issuance of the new bonds. In addition, for 12 consecutive months out of the 15 consecutive months immediately preceding the issuance of new bonds, 40% of Prop A revenues collected must equal at least 125% of maximum annual debt service for all Prop A Bonds issued for non-rail purposes that will be outstanding immediately following the issuance of the new bonds.

Third Tier Prop A Obligations.

For 12 consecutive months out of the 18 consecutive months immediately preceding the issuance of bonds


FY06 Budget


subordinate to the Third Tier Prop A Obligations, 75% of all Prop A revenues collected must equal at least 100% of maximum annual debt service for all Prop A Bonds that will be outstanding immediately following the issuance of the new bonds.

All Prop A Bonds.

For 12 consecutive months out of the 18 consecutive months immediately preceding the issuance of new bonds, 75% of all Prop A revenues collected must

equal at least 130% of maximum annual debt service for all Prop A Bonds that will be outstanding immediately following the issuance of the new bonds.


FY06 Budget


Proposition C Sales Tax Revenue Debt Affordability Targets Category Allowable Uses & Status Debt Policy Maximum

Discretionary 40% Bus & Rail, Capital & Operating.

40% of Prop C 40% Discretionary revenues.

Highway 25% Streets, Highways and Fixed Guideway Projects on Railroad Right-of-Way.

60% of Prop C 25% Highway.

Commuter Rail 10% Commuter Rail and Park and Ride. Operations or capital.

40% of Prop C 10% Commuter Rail.

Security 5% Transit Security. Operations or capital.

No debt issuance.

Local Return 20% Any transit purpose and certain roadways heavily used by transit. Distributed to localities based on population.

N/A

First Senior Prop C Bonds.

For 12 consecutive months out of the 18 consecutive months immediately preceding the issuance of new bonds, pledged Prop C revenues collected must equal at least 400% of maximum annual debt service for all First Senior Prop C Bonds and 130% of maximum annual debt service for all Prop C Bonds that will be outstanding immediately following the issuance of the new bonds.

Second Senior Prop C Bonds.

For 12 consecutive months out of the 18 consecutive months immediately preceding the issuance of new bonds, pledged Prop C revenues collected must equal at least 130% of maximum annual debt service for all Second Senior Prop C Bonds that will be outstanding immediately following the issuance of the new bonds.


FY06 Budget


Subordinate Lien Prop C Obligations.

For 12 consecutive months out of the 18 consecutive months immediately preceding the issuance of new bonds or debt obligations, pledged Prop C revenues collected must equal at least 130% of maximum annual debt service for all Second Senior and Subordinate Lien Prop C debt and obligations that will be outstanding immediately following the issuance of the new bonds or debt

obligations. In addition, for 12 consecutive months out of the 18 consecutive months immediately preceding the issuance of bonds subordinate to the Subordinate Lien Prop C obligations, pledged Prop C revenues collected must equal at least 100% of maximum annual debt service for all Prop C Bonds and Obligations that will be outstanding immediately following the issuance of the new bonds

APPENDIX 5: PROPOSITIONS A & C, and TDA ADMINISTRATIONEXPENDITURES AND FUNDING

Project Task Name FY06 Budget Prop A

Administration Prop C

Administration TDA

Administration Grants Total

Allocation

1 Beginning Fund Balance -$ $ 3,915,000 -$ $ - -$ 3,915,000$

2 Revenues for the year - Actual 27,052,416 9,289,808 6,000,000 1,904,854 44,247,079

3 Available funds 30,967,416 9,289,808 6,000,000 1,904,854 48,162,079

4

5 100002-Governmental/Oversight

6 General oversight 14,704,162 14,704,162 - - - 14,704,162

7 Legal expenses 571,500 571,500 - - - 571,500

8 Transportation Foundation 38,665 38,665 - - - 38,665

9 Investment/Debt Management 65,062 65,062 - - - 65,062

10 Investment/Cash Management 74,401 74,401 - - - 74,401

11 Debt Management 67,334 67,334 - - - 67,334

12 Total Project 100002 15,521,124 15,521,124 - - - 15,521,124

13

14 100012-Prop A & C Audit

15 Prop A & C Audit 90,828 45,414 45,414 - - 90,828

16 Total Project 100012 90,828 45,414 45,414 - - 90,828

17

18 100050-Administration-Subsidy/Call for Projects(CFP)

19 G&A Costs 2,470,381 2,470,381 - - - 2,470,381

20 Total Project 100050 2,470,381 2,470,381 - - - 2,470,381

21

22 100060-Admin.-General Planning

23 G & A Costs 6,486,097 6,486,097 - - - 6,486,097

24 Total Project 100060 6,486,097 6,486,097 - - - 6,486,097

25

26 405510-Other Planning and Programming

27 Call/MOU Tech Services 82,887 41,444 41,443 - - 82,887

28 Consolidated Audit Services 599,402 161,128 161,127 277,147 - 599,402

29 Triennial Audit Management 143,678 47,893 47,892 47,893 - 143,678

30 HOV Administration 14,187 - 14,187 - - 14,187

31 Prop A/C Administration 350,586 175,293 175,293 - - 350,586

32 Grants Administration 1,157,016 385,672 385,673 385,672 - 1,157,017

33 TDA Article 3 & 8 148,345 - - 148,345 - 148,345

34 TIP Administration 1,177,191 392,397 392,397 392,397 - 1,177,191

35 STIP PPM 1,894,854 - - - 1,894,854 1,894,854

36 Government Coordination / Outreach. 515,103 257,552 257,551 - - 515,103

37 Bus System Improvements Plan 120,038 120,038 - - - 120,038

38 Station Planning/Joint Develop 2,089,720 - 2,089,720 - - 2,089,720

39 Bike Parking Racks & Lockers 78,985 - - 78,985 - 78,985

40 Art Program 178,905 - 178,905 - - 178,905

41 Public Outreach 21,569 10,784 10,785 - - 21,569

42 General Planning 799,026 35,459 35,459 728,108 - 799,026

43 MTA / OCTA Commuter Rail Plan 65,000 - 65,000 - - 65,000

44 General Commuter Program 3,301 3,301 - - - 3,301

45 Increase customer awareness Program 1,996,871 221,667 807,385 967,819 - 1,996,871

46 Total Project 405510 11,436,666 1,852,628 4,662,818 3,026,365 1,894,854 11,436,665

VII-22 • Appendix 5: Propositions A & C, and TDA Expenditures and Funding Appendix


REVENUE SOURCE


Project Task Name FY06 Budget Prop A

Administration Prop C

Administration TDA

Administration Grants Total

Allocation

47 405511-Transit Planning

48 LA County Token Program 103,732$ -$ 103,732$ -$ -$ 103,732$

49 Long Range Plan Update 1,684,115 561,372 561,372 561,371 - 1,684,115

50 Municipal Funding & Coordination. 340,066 113,355 113,355 113,355 - 340,066

51 Admin. NTD Report - Local Cities 91,080 30,360 30,360 30,360 - 91,080

52 Restructuring Study 647,835 215,945 215,945 215,945 - 647,835

53 Bus Service Improvements 6,384,989 1,751,220 3,042,805 1,590,964 - 6,384,989

54 Metro Rapid Bus 356,400 118,800 118,800 118,800 - 356,400

55 Transit Service Expansion 5,167 - 5,167 - - 5,167

56 Transit Planning 798,132 256,044 266,044 266,044 10,000 798,132

57 BRT Research 10,000 5,000 5,000 - - 10,000

58 Eastside Ext. Pedestrian Crossing 50,000 25,000 25,000 - - 50,000

59 ADA Compliance 34,400 17,200 17,200 - - 34,400

60 Research & Development 501,096 501,096 - - - 501,096

61 GIS Work for Planning Studies 230,386 76,795 76,797 76,795 - 230,387

62 Total Project 405511 11,237,399 3,672,188 4,581,576 2,973,635 10,000 11,237,399

63

64 609911-Transit Academy/TOPS

65 TOP 35,975 35,975 - - - 35,975

66 Total Project 609911 35,975 35,975 - - - 35,975

67

68 610340-Investment & Debt Management

69 Investment & Debt Management 883,609 883,609 - - - 883,609

70 Total Project 609911 883,609 883,609 - - - 883,609

7172 Total Expenditures/Allocations 48,162,079 30,967,416 9,289,808 6,000,000 1,904,854 48,162,079

7374 Remaining balance at June 30, 2006 -$ -$ -$ -$ -$ -$

Appendix Appendix 5: Proposition A & C, and TDA Expenditures and Funding • VII-23

REVENUE SOURCE

APPENDIX 6: SUMMARY of REVENUES and CARRYOVER by SOURCE

(Amounts in thousands) Fiscal Year 2004 Fiscal Year 2005

Revenue Source Carryover Actual Total Carryover Amended Total Carryover Budget Total

1 Sales Tax Revenues2 Proposition A3 Administration 479$ 28,833$ 29,311$ 1,018$ 29,748$ 30,765 1,267$ 30,967$ 32,234$ 4 Local Return (25%) 4,661 136,955 141,615 5,005 141,302 146,307 - 147,095 147,095 5 Rail - Set Aside (35%) 8,131 191,736 199,867 30,322 197,823 228,144 4,890 205,933 210,823 6 Discretionary (95% of 40%) 32,901 208,171 241,072 53,288 214,779 268,067 32,901 223,585 256,486 7 Incentive (5% of 40%) 19,471 10,956 30,427 24,986 11,304 36,290 19,986 11,768 31,754

8 Total proposition A 65,643 576,651 642,294 114,619 594,955 709,574 59,044 619,348 678,392 910 Proposition C11 Administration 556 8,650 9,206 721 8,924 9,645 720 9,290 10,010 12 Local Return (20%) 8,348 113,601 121,949 8,945 117,201 126,146 - 122,006 122,006 13 Security (5%) 31 28,400 86,104 2,470 29,300 31,770 1,928 30,502 32,429 14 Commuter Rail (10%) 57,704 56,800 233,253 72,052 58,600 130,653 37,932 61,003 98,935 15 Streets & Highways (25%) 176,453 142,001 318,454 149,641 146,501 296,142 104,844 152,508 257,352 16 Discretionary (40%) 61,852 227,202 289,054 27,744 234,402 262,146 28,557 244,012 272,569

17 Total proposition C 304,945 576,654 881,599 261,573 594,928 856,501 173,981 619,321 793,302 1819 Transportation Development Act - TDA20 Administration - (Fixed) - 6,000 6,000 - 6,000 6,000 - 6,000 6,000 21 Article 3 - (2%) 14,674 5,760 20,434 14,192 5,929 20,121 16,003 6,177 22,180 22 Article 4 - (92.68%) 127,277 266,957 394,233 124,958 274,806 399,764 94,046 286,085 380,130 23 Article 8 - (5.32%) 1,133 15,299 16,432 1,284 15,712 16,996 989 16,585 17,574

24 Total TDA 143,083 294,016 437,100 140,435 302,446 442,882 111,038 314,847 425,884 25 - 26 State Transit Assistance - STA27 Revenue Share - PUC 99314 35,322 14,642 49,964 45,193 18,483 63,676 46,180 21,618 67,798 28 Population Share - PUC 99313 13,687 16,444 30,131 13,244 16,389 29,632 10,321 19,169 29,490

29 Total STA 49,009 31,086 80,095 58,437 34,871 93,309 56,501 40,787 97,288

30 Total Sales Tax 562,680 1,478,408 2,041,087 575,064 1,527,201 2,102,265 400,564 1,594,302 1,994,866 3132 Intergovernmental33 Local Funds34 Access Service Inc - ASI (RSTP Federal Funds) - 46,955 46,955 - 47,900 47,900 - - - 35 City of LA. - 1,194 1,194 - - - - 6,445 6,445 36 Department of Water and Power - DWP - - - - 200 200 - - - 37 Joint Development - Grand Central Market - - - - 2,281 2,281 - - - 38 Local Other - 8,208 8,208 - - - - -

39 Total local funds - 56,356 56,356 - 50,381 50,381 - 6,445 6,445 40 State Funds - 41 State Regional STIP/TCRP - 14,662 14,662 - 30,949 30,949 - 72,916 72,916 42 State Highway Account - 295 295 - 2,161 2,161 - 781 781 43 AQMD - - 800 - 1,044 1,044 44 STIP - PPM - - - - - - - 2,500 2,500 45 Freeway Service Patrol - State/Local Grant - 6,597 6,597 - 6,500 6,500 - 9,000 9,000 46 State Other - 341 341 - 209 209 - 165 165

47 Total state funds - 21,895 21,895 - 40,619 40,619 - 86,407 86,407 48 Federal Funds - 49 Federal Section 5309 [ 3 ] Capital - New Starts - 11,505 11,505 - 60,664 60,664 - 80,000 80,000 50 Federal Section 5309 [ 3 ] Fixed Guideways - 50,591 50,591 - 48,397 48,397 - 27,815 27,815 51 Federal Section 5309 [ 3 ] Bus Facilities - - - 5,620 5,620 - 8,740 8,740 52 Federal Section 5307 [ 9 ] Capital - 52,612 52,612 - 75,535 75,535 - 19,818 19,818 53 Congestion Mitigation & Air Quality - CMAQ - 55,722 55,722 - 85,206 85,206 - 107,550 107,550 54 Federal TEA - - - 5,813 5,813 - 4,225 4,225 55 Regional Surface Transp. Funds (RSTP) - 12,987 12,987 - 27,220 27,220 - 73,607 73,607 56 Federal STP - - - - - - - 2,238 2,238 57 Federal Homeland Security - - - - 3,179 3,179 - 2,654 2,654 58 FHWA - L.A. County - - - 1,001 1,001 - - - 59 Federal Other - 873 873 - 13,100 13,100 - 5,479 5,479

60 Total federal funds - 184,290 184,290 - 325,735 325,735 - 332,127 332,127

61 Total Intergovernmental - 262,541 262,541 - 416,735 416,735 - 424,979 424,979

62 Balance to following page 562,680$ 1,740,949$ 2,303,629$ 575,064$ 1,943,936$ 2,519,000$ 400,564$ 2,019,281$ 2,419,845$

VII-24 • Appendix 6: Summary of Revenues and Carryover by Source Appendix

Fiscal Year 2006



(Amounts in thousands) Fiscal Year 2004 Fiscal Year 2005 Fiscal Year 2006

Revenue Source Carryover Actual Total Carryover Amended Total Carryover Budget Total

63 Balance from previous page 562,680$ 1,740,949$ 2,303,629$ 575,064$ 1,943,936$ 2,519,000$ 400,564$ 2,019,281$ 2,419,845$ 64 Investment Income65 Prop A Interest 5,499 182 5,681 (2,097) 2,800 703 (1,302) 2,000 698 66 Prop C Interest 29,603 (361) 29,242 (2,723) 7,000 4,277 (7,595) 7,600 5 67 TDA Interest 3,891 2,301 6,192 2,599 2,200 4,799 1,499 2,000 3,499 68 STA Interest - 779 779 - 500 500 - 500 500 69 General Fund - Interest Revenue - 804 804 - 1,800 1,800 - 791 791 70 Sales Leaseback - 611 611 - - - - 630 630 71 Right of way lease revenues - 1,286 1,286 - 1,800 1,800 - 606 606 72 SAFE - Interest Revenue - 535 535 - 900 900 - 950 950 73 FAU Cash Interest - 189 189 - - - - 185 185 74 Interest Earned on Debt Service Funds - 49,905 49,905 - 20,000 20,000 - - - 75 Interest Earned on Capital Projects Fund/ISF - 1,258 1,258 - - - - - -

76 Total investment income 38,993 57,490 96,483 (2,221) 37,000 34,779 (7,398) 15,262 7,865 77 Lease and Rental 66,030 10,963 76,993 48,443 10,500 58,943 30,311 10,652 40,963 78 License and Fines 79 SAFE 27,215 7,261 34,476 26,574 7,000 33,574 25,415 7,000 32,415 80 HOV Lanes Fines 0 456 456 2 500 502 - 500 500

81 Total license and fines 27,216 7,717 34,932 26,576 7,500 34,076 25,415 7,500 32,915 82 Other83 General fund revenues84 Parking Fees - USG Building - 994 994 - 960 960 - 1,326 1,326 85 Reserved Parking Permits At Rail Stations - - - - - - - 60 60 86 Sales Leaseback 41,900 8,128 50,028 50,168 - 50,168 32,091 - 32,091 87 Employee Activities 219 493 712 (79) 760 681 - 568 568 88 Miscellaneous other - 7,904 7,904 - 51 51 - 51 51 89 Net (decline) in fair value of investment - (1,297) (1,297) - - - - - - 90 Pasadena B.L. (Admin costs reimbursement) - - - - 75 75 - 75 75 91 General fund estimated carryover balance 22,063 - 22,063 39,568 - 39,568 40,824 - 40,824

92 Total general fund revenues 64,183 16,222 80,404 89,656 1,846 91,502 72,915 2,080 74,995 93 FAU Cash 10,077 - 10,077 7,394 263 7,657 4,458 - 4,458 94 Ridesharing 1,298 19 1,317 1,317 - 1,317 1,342 - 1,342 95 Benefit Assessment District 18,074 18,074 - 5,997 5,997 - 22,841 22,841 96 EZ Pass Program - - - - 7,500 7,500 - 4,852 4,852

97 Total other 75,557 34,315 109,872 98,366 15,606 113,973 78,715 29,774 108,489 98 Operating revenues:99 Fare Box Revenues - Passenger fares - 221,454 221,454 - 262,683 262,683 - 261,030 261,030

100 Route subsidies - Hollywood shuttle - 602 602 - 500 500 - 500 500 101 Metrolink EZ Pass Reimbursement - - - - 2,500 2,500 - 2,650 2,650 102 Advertising - 11,932 11,932 - 13,750 13,750 - 15,675 15,675

103 Total operating revenues - 233,989 233,989 - 279,433 279,433 - 279,855 279,855 104 Non-operating revenues105 FTA Grant - 5307 Preventive Maintenance - 89,415 89,415 - 145,488 145,488 - 140,211 140,211 106 FTA Grant - 5309 Fixed Guideways - - - - 43,176 43,176 - 17,627 17,627 107 FTA Grant - CMAQ Rapid Bus/Pasadena Gold Line - 25,803 25,803 - 28,100 28,100 - 35,000 35,000 108 Federal - Homeland Security - - - - 1,118 1,118 - 720 720 109 State - Homeland Security - 510 510 - 705 705 - 80 80 110 Interest revenues - 3,547 3,547 - 2,200 2,200 - 3,800 3,800 111 Net (decline) in fair value of investments - (5,871) (5,871) - - - - - - 112 Other: 113 Bus Parts/Scrap Sales - 309 309 - 400 400 - 530 530 114 Filming Fees - 606 606 - 550 550 - 550 550 115 County Buy down - 339 339 - 492 492 - 439 439 116 Fare Violations/Fines - 959 959 - 1,200 1,200 - 2,000 2,000 117 Proceeds from Sales of Surplus Property - - - - - - - 3,900 3,900 118 Miscellaneous - 175 175 - 500 500 - 500 500

119 Total other - 2,388 2,388 - 3,142 3,142 - 7,919 7,919

120 Total non-operating revenue - 115,793 115,793 - 223,929 223,929 - 205,357 205,357

121 Total Revenues 770,475 2,201,215 2,971,691 746,229 2,517,905 3,264,134 527,607 2,567,681 3,095,289 122 Other financing Sources123 Proceeds from financing124 Proposition A Rail Bonds/CP - 60,000 60,000 - 126,144 126,144 - 105,190 105,190 125 Proposition A Discretionary Bonds/CP - - - - - - 10,624 10,624 126 Proposition C St & Hwys Bonds/CP - 22,448 22,448 - 182,148 182,148 - 57,685 57,685 127 Proposition C Discr Bonds/CP - - - - 3,241 3,241 - 5,797 5,797

128 Total proceeds from financing - 82,448 82,448 - 311,533 311,533 - 179,296 179,296 129 Proceeds from refunding bonds - - - - 165,000 165,000 - - -

130 Total other financing sources - 82,448 82,448 - 476,533 476,533 - 179,296 179,296 131 Total revenues and carryovers 770,475$ 2,283,663$ 3,054,139$ 746,229$ 2,994,438$ 3,740,668$ 527,607$ 2,746,977$ 3,274,584$

Notes: Intergovernmental funds are on reimbursement basis; therefore, no carryover balances are assumed.FY04 Actual exclude proceeds from refunding bonds($392.6M), proceeds from sales(debt)($82.6M) and regional EZ Transit Pass Program($4.8M)

Appendix Appendix 6: Summary of Revenues and Carryover by Source • VII-25

APPENDIX 7: ACTIVITY BASED BUS COST MODEL

ACTIVITIES Dollars $/RSH Dollars $/RSH Dollars $/RSH1 TRANSPORTATION2 Wages & Benefits 291,575,389$ 41.33$ 303,865,755$ 43.09$ 12,290,366$ 1.76$ 3 Materials & Supplies 379,286 0.05 390,138 0.06 10,852 0.004 Training 4,693,317 0.67 5,303,984 0.75 610,667 0.095 Control Center 6,407,248 0.91 6,785,411 0.96 378,163 0.056 Scheduling and Planning 3,352,092 0.48 3,409,472 0.48 57,380 0.017 SUB-TOTAL 306,407,331 43.43 319,754,760 45.34 13,347,429 1.9189 DIVISION MAINTENANCE

10 Wages & Benefits 98,109,925 13.91 103,378,061 14.66 5,268,136 0.7511 Fuel 41,174,633 5.84 45,721,652 6.48 4,547,019 0.6512 Materials & Supplies 36,398,631 5.16 37,069,718 5.26 671,087 0.1013 Fueling Contractor Reimb. (543,681) (0.08) (1,721,575) (0.24) (1,177,894) (0.17)14 SUB-TOTAL 175,139,508 24.83 184,447,857 26.15 9,308,348 1.331516 RRC REGULAR MAINTENANCE17 Wages & Benefits 4,555,524 0.65 6,293,948 0.89 1,738,424 0.2518 Materials & Supplies 2,548,270 0.36 2,871,153 0.41 322,883 0.0519 Maintenance Services 190,089 0.03 194,718 0.03 4,629 0.0020 SUB-TOTAL 7,293,884 1.03 9,359,819 1.33 2,065,936 0.292122 RRC PREVENTATIVE MAINTENANCE 23 Power Plant Assembly 7,045,816 1.00 7,692,604 1.09 646,788 0.0924 Accident Repair 1,717,366 0.24 1,790,970 0.25 73,604 0.0125 Wheelchair Lifts 224,452 0.03 275,640 0.04 51,188 0.0126 Painting 882,474 0.13 838,196 0.12 (44,278) (0.01)27 Windows 18,010 0.00 18,010 0.00 - 0.0028 SUB-TOTAL 9,888,118 1.40 10,615,419 1.51 727,302 0.102930 OTHER MAINTENANCE31 Maintenance Support 12,623,887 1.79 12,045,828 1.71 (578,059) (0.08)32 Non-Revenue Vehicles 3,675,076 0.52 4,135,940 0.59 460,864 0.0733 Facilities Maintenance 25,806,189 3.66 27,958,214 3.96 2,152,026 0.3134 Training 1,464,438 0.21 1,585,099 0.22 120,661 0.0235 SUB-TOTAL 43,569,589 6.18 45,725,081 6.48 2,155,492 0.313637 SUB-TOTAL MAINTENANCE 235,891,099 33.44 250,148,176 35.47 14,257,077 2.0338

VII-26 • Appendix 7: Activity Based Bus Cost Model Appendix

FY06 BudgetFY05 Amended FY05 to FY06


ACTIVITIES Dollars $/RSH Dollars $/RSH Dollars $/RSH39 OTHER OPERATING COSTS40 Transit Security 18,153,126 2.57 18,188,415 2.58 35,289 0.0141 General Managers 12,816,606 1.82 14,316,071 2.03 1,499,465 0.2142 Revenue 12,882,905 1.83 12,509,556 1.77 (373,349) (0.05)43 Service Development 3,258,805 0.46 2,860,380 0.41 (398,425) (0.06)44 Safety 1,683,373 0.24 2,037,346 0.29 353,973 0.0545 Casualty & Liability 40,974,229 5.81 45,376,147 6.43 4,401,918 0.6346 Workers' Compensation 51,876,548 7.35 53,695,179 7.61 1,818,631 0.2647 Transitional Duty Program 2,001,487 0.28 2,248,862 0.32 247,376 0.0448 Other Metro Operations 14,342,143 2.03 11,722,491 1.66 (2,619,652) (0.37)49 Building Costs 9,435,465 1.34 7,494,951 1.06 (1,940,514) (0.27)50 Employee Subsidy & Fringe 493,261 0.07 792,118 0.11 298,856 0.0451 Copy Services 1,529,110 0.22 992,920 0.14 (536,190) (0.08)52 SUB-TOTAL 169,447,059 24.02 172,234,436 24.42 2,787,377 0.405354 SUPPORT DEPARTMENT COSTS 47,899,198 6.79 47,255,518 6.70 (643,680) (0.09)5556 TOTAL LOCAL & RAPID 759,644,688 107.68 789,392,891 111.93 29,748,203 4.2557 REVENUE SERVICE HOURS 7,054,943 7,052,542 (2,401) 5859 PURCHASED TRANSPORTATION60 Contracted Service 26,421,709 51.59 32,441,758 61.52 6,020,049 9.9361 Security 1,266,679 2.47 1,360,016 2.58 93,337 0.1162 Administration 1,571,719 3.07 758,765 1.44 (812,954) (1.63)63 SUB-TOTAL 29,260,107 57.13 34,560,539 65.54 5,300,432 8.4164 REVENUE SERVICE HOURS 512,175 527,345 15,170 6566 ORANGE LINE67 Direct - 5,727,630 89.88 5,727,630 n/a 68 Indirect - 1,169,161 18.35 1,169,161 n/a 69 Security - 2,558,848 40.15 2,558,848 n/a 70 Workers' Compensation 413,945 6.50 413,945 n/a 71 SUB-TOTAL - 9,869,583 154.88 9,869,583 n/a 72 REVENUE SERVICE HOURS 63,725 63,725 7374 TOTAL EXCLUDING DEBT 788,904,795 104.25$ 833,823,013 109.09$ 44,918,219 4.83$ 75 REVENUE SERVICE HOURS 7,567,118 7,643,612 76,494 7677 ENTERPRISE FUND DEBT78 Interest 2,787,967 2,555,149 (232,818) 79 Administration 465,525 469,203 3,679 80 SUB-TOTAL 3,253,491 3,024,352 (229,139) 8182 TOTAL BUS PROJECT 792,158,286$ 836,847,366$ 44,689,080$

Appendix Appendix 7: Activity Based Bus Cost Model • VII-27


FY05 Amended FY06 Budget FY05 to FY06

APPENDIX 8: ACTIVITY BASED LIGHT RAIL COST MODEL

ACTIVITIES Dollars $/RSH Dollars $/RSH Dollars $/RSH1 TRANSPORTATION2 Wages & Benefits 21,863,349$ 56.22$ 21,363,337$ 59.91$ (500,012)$ 3.70$ 3 Materials & Supplies 224,186 0.58 $177,397 0.50 (46,789) (0.08) 4 Other 24,555 0.06 $24,555 0.07 - 0.01 5 SUB-TOTAL 22,112,090 56.86 21,565,289 60.48 (546,801) 3.62 67 MAINTENANCE8 VEHICLE MAINTENANCE9 Wages & Benefits 18,808,683 48.36 20,215,705 56.70 1,407,023 8.33

10 Materials & Supplies 5,642,142 14.51 5,895,941 16.54 253,799 2.03 11 SERVICES 5,100 0.01 9,688 0.03 4,588 0.01 12 Services 498,537 1.28 1,137,500 3.19 638,963 1.91 13 SUB-TOTAL 24,954,462 64.17 27,258,835 76.45 2,304,373 12.28 1415 WAYSIDE MAINTENANCE 16 Wages & Benefits 20,083,829 51.64 21,162,276 59.35 1,078,446 7.71 17 Materials & Supplies 2,323,297 5.97 1,327,728 3.72 (995,569) (2.25) 18 Propulsion Power 12,755,826 32.80 12,554,876 35.21 (200,950) 2.41 19 Other 322,052 0.83 1,448,152 4.06 1,126,100 3.23 20 SUB-TOTAL 35,485,005 91.24 36,493,032 102.35 1,008,027 11.10 2122 OTHER MAINTENANCE23 Maintenance Support 14,000 0.04 - - (14,000) (0.04) 24 Non-Revenue Vehicles 1,079,574 2.78 858,173 2.41 (221,401) (0.37) 25 Facilities Maintenance 3,183,782 8.19 3,974,374 11.15 790,592 2.96 26 SUB-TOTAL 4,277,355 11.00 4,832,547 13.55 555,192 2.55 27 - - 28 SUB-TOTAL MAINTENANCE 64,716,822 166.41 68,584,414 192.35 3,867,592 25.94 2930 OTHER OPERATING COSTS31 Transit Security 25,412,566 65.34 26,149,936 73.34 737,370 7.99 32 General Manager 1,323,852 3.40 1,534,262 4.30 210,410 0.90 33 Revenue 2,532,072 6.51 3,931,861 11.03 1,399,789 4.52 34 Service Development 279,027 0.72 267,671 0.75 (11,356) 0.03 35 Safety 1,346,782 3.46 1,569,959 4.40 223,176 0.94 36 Casualty & Liability 2,571,158 6.61 2,165,610 6.07 (405,548) (0.54) 37 Workers' Compensation 4,406,769 11.33 4,316,195 12.10 (90,574) 0.77 38 Other Metro Operations 2,677,030 6.88 2,253,749 6.32 (423,282) (0.56) 39 Building Costs 1,861,816 4.79 876,860 2.46 (984,956) (2.33) 40 Employee Subsidy & Benefits 160,984 0.41 303,680 0.85 142,696 0.44 41 Copy Services 9,642 0.02 176,992 0.50 167,350 0.47 42 SUB-TOTAL 42,581,698 109.49 43,546,774 122.13 965,076 12.64 4344 SUPPORT DEPARTMENT COSTS 12,724,935 32.72 13,397,373 37.57 672,438 4.85 4546 TOTAL LIGHT RAIL PROJECT $142,135,544 365.48$ 147,093,850$ 412.53$ 4,958,306$ 47.05$

47 TOTAL REVENUE SERVICE HOURS 388,906 356,565 (32,341)

VII-28 • Appendix 8: Activity Based Light Rail Cost Model Appendix



APPENDIX 9: ACTIVITY BASED HEAVY RAIL COST MODEL

ACTIVITIES Dollars $/RSH Dollars $/RSH Dollars $/RSH1 TRANSPORTATION2 Wages & Benefits 7,215,179$ 26.69$ 8,308,088$ 31.64$ 1,092,909$ 4.95$ 3 Materials & Supplies 79,963 0.30 73,259 0.28 (6,704) (0.02)4 Other 8,038 0.03 8,038 0.03 - 0.005 SUB-TOTAL 7,303,180 27.02 8,389,384 31.95 1,086,204 4.9367 MAINTENANCE8 VEHICLE MAINTENANCE9 Wages & Benefits 9,519,025 35.22 10,421,053 39.69 902,028 4.47

10 Materials & Supplies 2,720,500 10.06 2,968,181 11.30 247,681 1.2411 Other 12,000 0.04 18,529 0.07 6,529 0.0312 Services 547,718 2.03 735,668 2.80 187,950 0.7813 SUB-TOTAL 12,799,243 47.35 14,143,431 53.86 1,344,188 6.511415 WAYSIDE MAINTENANCE 16 Wages & Benefits 7,593,365 28.09 7,524,862 28.66 (68,504) 0.5717 Materials & Supplies 1,150,911 4.26 1,033,899 3.94 (117,012) (0.32)18 Propulsion Power 8,062,000 29.83 9,238,600 35.18 1,176,600 5.3619 Other 690,533 2.55 1,111,061 4.23 420,528 1.6820 SUB-TOTAL 17,496,810 64.73 18,908,422 72.01 1,411,612 7.282122 OTHER MAINTENANCE23 Maintenance Support 15,081 0.06 - 0.00 (15,081) (0.06)24 Non-Revenue Vehicles 359,858 1.33 286,058 1.09 (73,800) (0.24)25 Facilities Maintenance 2,834,196 10.49 3,943,351 15.02 1,109,155 4.5326 SUB-TOTAL 3,209,135 11.87 4,229,408 16.11 1,020,273 4.2327 - 0.0028 SUB-TOTAL MAINTENANCE 33,505,188 123.96 37,281,262 141.98 3,776,073 18.032930 OTHER OPERATING COSTS31 Transit Security 17,762,261 65.71 17,165,458 65.37 (596,803) (0.34)32 General Manager 891,025 3.30 1,077,362 4.10 186,337 0.8133 Revenue 1,940,973 7.18 1,877,074 7.15 (63,899) (0.03)34 Service Development 93,009 0.34 89,224 0.34 (3,785) (0.00)35 Safety 232,974 0.86 343,716 1.31 110,743 0.4536 Casualty & Liability 3,495,926 12.93 3,524,678 13.42 28,752 0.4937 Workers' Compensation 2,100,192 7.77 1,844,357 7.02 (255,835) (0.75)38 Other Metro Operations 1,110,506 4.11 956,673 3.64 (153,833) (0.46)39 Building Costs 765,889 2.83 360,335 1.37 (405,554) (1.46)40 Employee Subsidy & Benefits 66,780 0.25 128,906 0.49 62,126 0.2441 Copy Services 4,000 0.01 75,130 0.29 71,130 0.2742 SUB-TOTAL 28,463,534 105.30 27,442,913 104.51 (1,020,622) (0.79)4344 SUPPORT DEPARTMENT COSTS 4,910,587 18.17 4,918,932 18.73 8,345 0.574546 TOTAL HEAVY RAIL PROJECT 74,182,490$ 274.45$ 78,032,491$ 297.18$ 3,850,001$ 22.74$

47 TOTAL REVENUE SERVICE HOURS 270,299 262,574 (7,725)

Appendix Appendix 9: Activity Based Heavy Rail Cost Model • VII-29



APPENDIX 10: MODAL OPERATING STATISTICS

FY04 FY05 FY06 Inc/(Dec)Bus Notes Actual Amended Budget FY05 to FY06

1 Fares ($000) $186,441 $220,976 $220,977 $12 Other Operating Revenue ($000) $11,271 $14,250 $16,175 $1,9253 Expenses ($000) 1 $724,355 $788,905 $833,823 $44,9184 Boardings (000) 329,875 365,812 369,897 4,085 5 Farebox Recovery Ratio 25.7% 28.0% 26.5% -1.5%6 Vehicle Service Hours (000) 3 6,622 7,567 7,644 76 7 Cost per Hour $109.39 $104.25 $109.09 $4.838 Cost per Passenger Mile $0.57 $0.55 $0.58 $0.039 Vehicle Service Miles (000) 3 82,498 94,436 94,967 531

10 Passenger Miles (000) 1,270,902 1,426,667 1,442,594 15,927 11 Fare Revenue per Boarding $0.57 $0.60 $0.60 $0.0012 Subsidy per Boarding 2 $1.60 $1.51 $1.61 $0.1013 Subsidy per Passenger Mile 2 $0.41 $0.39 $0.41 $0.0314 Vehicles Operated 2,098 2,242 2,241 (1)

FY04 FY05 FY06 Inc/(Dec)Light Rail Notes Actual Amended Budget FY05 to FY06

15 Fares ($000) $18,500 $21,426 $21,601 $17516 Other Revenue ($000) $800 $0 $0 $017 Expenses ($000) 1 $112,380 $142,136 $147,094 $4,95818 Boardings (000) 32,852 41,456 36,159 (5,297) 19 Farebox Recovery Ratio 16.5% 15.1% 14.7% -0.4%20 Vehicle Service Hours (000) 3 337 389 357 (32) 21 Cost per Hour $333.71 $365.48 $412.53 $47.0522 Cost per Passenger Mile $0.47 $0.66 $0.78 $0.1223 Vehicle Service Miles (000) 3 7,704 9,264 8,468 (796) 24 Passenger Miles (000) 241,217 215,568 188,024 (27,544) 25 Fare Revenue per Boarding $0.59 $0.52 $0.60 $0.0826 Subsidy per Boarding 2 $2.83 $2.91 $3.47 $0.5627 Subsidy per Passenger Mile 2 $0.39 $0.56 $0.67 $0.11

FY04 FY05 FY06 Inc/(Dec)Heavy Rail Notes Actual Amended Budget FY05 to FY06

28 Fares ($000) $16,462 $22,783 $21,102 ($1,681)29 Other Revenue ($000) $364 $0 $0 $030 Expenses ($000) 1 $66,210 $74,182 $78,032 $3,85031 Boardings (000) 30,870 35,908 35,323 (585) 32 Farebox Recovery Ratio 24.9% 30.7% 27.0% -3.7%33 Vehicle Service Hours (000) 3 238 270 263 (8) 34 Cost per Hour $277.70 $274.45 $297.18 $22.7335 Cost per Passenger Mile $0.43 $0.45 $0.48 $0.0336 Vehicle Service Miles (000) 3 5,398 6,604 6,030 (574) 37 Passenger Miles (000) 152,630 165,178 162,486 (2,692) 38 Fare Revenue per Boarding $0.55 $0.63 $0.60 ($0.04)39 Subsidy per Boarding 2 $1.60 $1.43 $1.61 $0.1840 Subsidy per Passenger Mile 2 $0.32 $0.31 $0.35 $0.04

Notes:(1) Expenses include Transitional Duty Program but exclude interest and debt administration.(2) Subsidy excludes all operating revenue.(3) Reflect revenue vehicle hours & miles.

VII-30 • Appendix 10: Modal Operating Statistics Appendix


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Appendix Appendix 10: Modal Operating Statistics • VII-31



FY06 Budget

VII-32 • Appendix 11: Public Transportation Services Corporation Appendix

APPENDIX 11: PUBLIC TRANSPORTATION SERVICES CORPORATION In December 1996, LACMTA created the Public Transportation Services Corporation (PTSC), a nonprofit public benefit corporation organized under the laws of the State. PTSC was created in order to transfer certain functions, currently performed by the LACMTA, and the employees related to those functions, to this new corporation. The PTSC conducts essential public transportation activities including but not limited to the following: (a) coordinates multi-modal multi-jurisdictional transportation planning; (b) programs Federal, state and local funds for transportation projects

county-wide within Los Angeles County; (c) oversees construction; (d) provides certain administrative services to the County’s Service Authority for Freeway Emergencies (SAFE) and the Southern California Regional Rail Authority (SCRRA); (e) provides security services to the operation of the Metro Bus and Rail systems; and (f) provides other activities and services as it deems necessary. One advantage of the PTSC is that it allows the employees of the corporation, including those transferred from the LACMTA, to participate in the California Public Employees Retirement System (PERS).


FY06 Budget

Appendix Appendix 11: Public Transportation Services Corporation • VII-33

Statement of Revenues, Expenditures and Changes in Fund Balances

For the Years Ending June 30, 2003, 2004 and 2005


FY04 FY05 FY06PTSC Only Actual Amended Budget

1 Revenue:2 Reimbursement for support services 170.0$ 112.7$ 110.7$ 3 Total revenue 170.0 112.7 110.7 45 Operating expenses:6 Salaries, wages & fringe 169.1 112.2 110.3 7 Services, leases, taxes & misc 0.9 0.5 0.4 8 Total expenses 170.0 112.7 110.7 9

10 Increase(decrease) in retained earnings - - - 1112 Retained earnings - beginning of year - - - 1314 Retained earnings - end of year -$ -$ -$


FY06 Budget

VII-34 • Appendix 12: Agency Funds Appendix

APPENDIX 12: AGENCY FUNDS Benefit Assessment is a fee used to pay part or all of the cost of capital improvements enhancing the value of property receiving service from, or located near and benefiting from, those capital improvements. Metro’s Benefit Assessment is a levy on properties within one-half mile of downtown Metro Red Line stations and one-third mile of the Westlake/MacArthur Park Station.

Metro’s Benefit Assessment Districts A1 and A2 were created pursuant to a resolution adopted by the former Southern California Rapid Transit District’s Board of Directors on July 11, 1985, to pay for a portion of the construction costs of the Metro Red Line Segment 1 stations. BAD A1 includes the downtown area of Los Angeles. Boundary is set at one-half mile

from the centers of the Metro Red Line Union, Civic Center, Pershing Square, and 7th Street Metro Stations. BAD A2 includes the MacArthur Park area. Boundary is set at one-third mile from the center of the Westlake/MacArthur Park Station.

The purpose of the Benefit Assessment District (BAD) Program is threefold: (1) to ensure that assessments are levied at a rate high enough to repay the A1 and A2 Assessment Districts’ bonded indebtedness and administrative costs, (2) to implement the property owner appeals process, and (3) to maintain a current inventory of assessable properties. The A1 and A2 Districts’ bonds do not constitute an indebtedness of the MTA and are payable solely from payments received on assessments against the levied properties.

Statement of Revenues, Expenditures and Changes in Fund Balances For the Years Ending June 30, 2004, 2005 and 2006(Amounts in millions)

Agency Fund FY04

Actuals FY05

Amended FY06 Budget

1 Revenue:

2 Other 18.1$ 22.6$ 22.8$

3 Total revenues 18.1 22.6 22.8

4

5 Expenditures:

6 Debt and interest expenditures 17.9 22.2 22.5


8 Total expenditures 18.1 22.6 22.8

9

10 Net change in fund balances - - -

11

12 Fund balances - beginning of year - - -

13

14 Fund balances - end of year -$ -$ -$

Appendix Appendix 12: Agency Funds • VII-35

Benefit Assessment District


FY06 Budget


FY06 Budget

VII-36 • Appendix 13: Description of Metro’s Clientele Appendix

APPENDIX 13: DESCRIPTION OF METRO’S CLIENTELE

Demographic Profile of Metro Bus Riders by Sector*

MTA System

San Fernando Valley

San Gabriel Valley

West Central

South Bay

Gateway

Gender Male Female

43% 57

44% 56

43% 57

44% 56

41% 59

43% 57

Median Household Income

$12,000 $13,000 $12,000 $12,000 $12,000 $11,000

Mean Age (Years) 39.6 39.9 39.3 40.6 39.5 38.4

Ethnicity Hispanic/Latino African-American/Black White/Caucasian Asian/Pacific Islander Other(American-Indian/ Multi-Racial)

58% 20 12 8

2

56% 10 22 9

3

68% 12 8

10

2

59% 16 14 9

2

46% 36 9 6

3

64% 25 5 4

2

*FY2002 On-Board Bus Survey, page 4.


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Appendix Appendix 13: Description of Metro’s Clientele • VII-37

Summary of Survey Results - Bus

Major findings from 31,000 completed surveys for the FY2002 Bus On-Board (Weekday) Survey are as follows:

Demographic Profile

• Weekday Metro Bus riders are 57% female and 43% male, with little difference by MTA service sector.

• Median annual household income for weekday bus riders is $12,000 per year, again with little difference by service sector.

• Latinos are the largest ethnic group among weekday riders (58%). African-Americans are 20% of the ridership, and Whites and Asians are 12% and 8%, respectively. Latino bus riders are particularly prominent in the San Gabriel Valley (68%) and Gateway (64%) sectors. African-American riders comprise 36% of the South Bay sector. White riders are most numerous in the San Fernando Valley (22%).

• The average age of weekday riders is 39.6. Whites and Asians are older than the other groups (46.5 and 45.9, respectively).

Travel Characteristics

• A large majority of weekday Metro Bus riders (74%) use more than one bus or train in the course of their one-way trip.

• Riders access their first bus or train almost entirely by walking (93%). A similar percentage (94%) walk to their final destination.

• Most riders (82%) use MTA buses 5 or more days per week.

• The home-to-work trip (and its reverse—work-to-home) constitutes 58% of all weekday trips.

• Most weekday Metro Bus riders use passes to pay their boarding fare (52%), more than 1/3 of whom use the regular monthly pass. Pass use is highest in the West Central sector (58%) and lowest in South Bay (50%).

Travel Patterns

• San Fernando Valley sector riders remain within the San Fernando Valley sector on 66% of all bus trips that originate there. This is in contrast to the San Gabriel Valley (47%) and South Bay (48%)—the only two sectors where a majority of riders travel outside of their sector.

• The major destination for riders outside of their own sector (for all sectors except West Central) is West Central. From the San Fernando Valley and South Bay, trips to West Central outnumber all other inter-sector trips combined, and from the San Gabriel Valley West Central trips are virtually equal to the total trips to all other sectors. Only from Gateway are West Central trips not so common.


FY06 Budget


Demographic Profile of Metro Rail Riders by Line*

All Lines

Blue Line

Red Line

Green Line

Gender Male Female

55% 45

54% 46

55% 45

57% 43

Median Household Income $22,000 $17,000 $25,000 $22,000

Mean Age (Years) 39.0 37.6 39.8 38.6

Ethnicity Hispanic/Latino White/Caucasian African-American/Black Asian Pacific Islander Other (American Indian/ Multi-Racial

41% 24 22 9

4

43% 15 32 7

3

39% 30 16 11

4

41% 18 28 10

3

*FY2002 On-Board Rail Survey, page 3 (before opening of Gold Line in Summer of 2003)


FY06 Budget


Summary of Survey Results - Rail

For the FY2002 Rail On-Board (Weekday) Survey, here are major findings from 12,182 completed surveys.

Demographic Profile

• Weekday Metro Rail riders are 55% male and 45% female, with little difference by line.

• Median annual household income is $22,000 per year. The Red Line demonstrates the highest income ($25,000) and the Blue Line the lowest ($17,000).

• Latinos are the largest ethnic group of riders (41%), with only small variations by line. White riders represent 24% of the ridership for all lines but 30% for the Red Line. African-American riders comprise 32% of the Blue Line and 28% of the Green Line, but only 22% overall owing to low Red Line ridership (16%).

• Median annual household income among White riders is $50,000 and over. African-Americans average $21,000 and Latinos $14,000. Median income among Asian riders is $34,000. All four ethnic groups demonstrate their lowest median income on the Blue Line. Latino and Asian incomes are highest on the Green Line.

• The mean age of Metro Rail riders is 39.0 years. Latino riders are notably younger than other groups (34.8 years) and White riders are the oldest (45.0 years).

Travel Characteristics

• A large majority of weekday Metro Rail riders (67%) use more than one bus or

train in the course of their one-way trip.

• Riders access their first bus or train mostly by walking (70%). An even larger percentage (82%) walk to their final destination.

• Most riders (72%) use Metro Rail 5 or more days per week.

• The 7th Street/Metro station (26%) and Pershing Square (9%) attract the most work trips.

• The dominant trip purpose for frequent weekday Metro Rail riders is the home-work trip (71%); the second most prevalent trip purpose is home-school (9%).

• Riders indicate that their median one-way trip consumes 65 minutes, including 35 minutes on board buses and trains and 10 minutes each for getting to, getting from, and waiting.

• Most Metro Rail riders use passes to pay their boarding fare (58%), half of whom use the regular monthly pass. Red Line pass usage is particularly high (66%) because of Metrolink riders.

Clientele and Economic Conditions

Metro has seen an increase in ridership that is attributed to soaring gasoline prices. Ridership on the Red Line jumped nearly 12% in the first three months of 2005 compared to the same period last year. Boardings rose 8% on the Green Line and 3% on the Blue Line. These increases are notable in light of the rainy weather during the same period. Bus boardings remained comparable to year-ago levels.


FY06 Budget


Customer Satisfaction Survey - Bus

Generally speaking, are you satisfied with Metro Bus Service?

Customer Satisfaction Survey - Rail

Generally speaking, are you satisfied with Metro Rail Service?

93 94 93 94 92

67 7 87

0

10

20

30

40

50

60

70

80

90

100

Fall 2002 Spring 2003 Winter 2004 Spring 2004 Fall 2004

Rail Survey Period

Per

cen

t of

Res

pon

den

ts

YES

NO

8175

80 82

19 1825

20 18

82

0

10

20

30

40

50

60

70

80

90

Fall 2002 Spr ing 2003 Winter 2004 Spr ing 2004 Fall 2004

Bus Survey Period

Per

cen

t of

Res

pon

den

ts

YES

NO


FY06 Budget


Opinion of Metro Improving

Discretionary Ridership Going Up

70 73 74

83

3027 26

17

0

10

20

30

40

50

60

70

80

90

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

2004

Per

cen

t of

Res

pon

den

ts

Favorable Unfavorable

22

26 25

29 30

0

5

10

15

20

25

30

35

Fall 2002 Spring 2003 Winter 2004 Spring 2004 Fall 2004

Per

cen

t of

Res

pon

den

ts


FY06 Budget


Considering Needs of Residents

Metro Provides Quality Service

5864

68

4236

32

0

10

20

30

40

50

60

70

80

2000 2002 2004

Per

cen

t of R

espo

nde

nts

Agree Disagree

64 67

78

36 33

21

0

10

20

30

40

50

60

70

80

90

2000 2002 2004

Per

cen

t of

Res

pon

den

ts

Agree Disagree


FY06 Budget




FY06 Budget

VII-44 • Appendix 14: Service Authority for Freeway Emergencies Appendix

APPENDIX 14: SERVICE AUTHORITY FOR FREEWAY EMERGENCIES The Service Authority for Freeway Emergencies (SAFE) was established in Los Angeles County in 1988. SAFE is a separate legal entity created under state law and is responsible for providing motorist aid services in Los Angeles County. SAFE currently operates and manages the Los Angeles County Kenneth Hahn Call Box System. There are 4,471 call boxes located in Los Angeles County. This is the largest such program in the United States. An average of 300 calls are received everyday.

In FY06, SAFE will continue to operate and maintain the call box system. During this fiscal year, SAFE plans to begin the transition of the call box system from an analog to a digital based communications system. SAFE also plans to evaluate the current placement of call boxes throughout the County and will develop recommendations to modify the call box system to ensure it efficiently and effectively meets needs of today’s freeway environment.

Another item on SAFE’s agenda is the implementation of a new motorist aid cellular service (Mobile Call Box) to provide motorists with the ability to use their cellular phones to request roadside assistance. SAFE plans on introducing this new service at the beginning of the fiscal year. SAFE also plans on working with Caltrans to install freeway exit sign numbers in a targeted region in the County.

SAFE will continue to fund the Metro Freeway Service Patrol I-710 Big Rig Demonstration Project and is also proposing to fund the expansion of the current Metro Freeway Service Patrol program during this fiscal year.

SAFE receives its funding from a dedicated $1 surcharge to the annual California vehicle registration fee. SAFE’s annual budget is developed and approved separately from MTA’s budget by SAFE’s Board of Directors.

Statement of Revenues, Expenditures and Changes in Fund Balances For the Years Ending June 30, 2004, 2005 and 2006(Amounts in millions)

Service Authority for Freeway Emergencies FY04Actual

FY05Amended

FY06Budget

1 Revenue:2 Investment income 0.3$ 0.9$ 1.0$ 3 Licenses and fines 7.3 7.0 7.0 4 Total revenues 7.6 7.9 8.0 56 Expenditures:7 Services 6.8 7.3 11.1 8 General and administrative 1.3 1.8 2.0 9 Total expenditures 8.2 9.1 13.1

1011 Net change in fund balances (0.6) (1.2) (5.1) 1213 Fund balances - beginning of year 27.2 26.6 25.4 14


Appendix Appendix 14: Service Authority for Freeway Emergencies • VII-45


FY06 Budget


FY06 Budget

VII-46 • Appendix 15: Advanced Technology Vehicle Consortium Appendix

APPENDIX 15: ADVANCED TECHNOLOGY VEHICLE CONSORTIUM The Advanced Technology Vehicle Consortium (ATVC) is an advisory body organized and funded by Metro, LA City, LA County, and the AQMD as a working unit to promote clean-fuel vehicles and technologies, outside Metro’s normal operating structure.

The ATVC is an independent non-profit California public corporation with its own independent Board of Directors that includes Y. Burke-Chair; J.Fasana-Vice Chair; J.Hahn; F.Roberts; Z. Yaroslavsky; M. Antonovich; and B. LaPisto-Kirtley.

The ATVC is responsible for the

continued development and commercialization of the Advanced Technology Bus and has been instrumental in identifying and recommending new transit technologies that include composite “Compo” buses, high capacity CNG articulated vehicles, and gasoline hybrid buses.

The ATVC monitors emissions standards and recommends technologies that will meet those standards. It also identifies technologies that leverage capital funds to reduce operating costs and improve performance, safety, and passenger comfort.


FY06 Budget

Appendix Appendix 16: Consent Decree • VII-47

APPENDIX 16: CONSENT DECREE

On October 28, 1996, a consent decree was agreed to between the LACMTA and the class action plaintiffs. The consent decree provides for the LACMTA to:

• Reduce its load factor (i.e. the number of people who stand on a bus) to certain targets.

• Expand bus service improvements by making available a net of 102 additional buses by June 1997.

• Implement a pilot project to facilitate access to countywide job, education and health care centers.

• Maintain the price of cash fares for two years and pass fares for three years beginning December 1, 1996, after which the LACMTA may raise fares subject to certain conditions of the Consent Decree. This element of the Consent Decree ended November 1, 2003.

• Introduce a weekly pass and an off-peak discount fare on selected lines.

The LACMTA is also obligated to create a joint working group with representatives from the plaintiff’s class and the LACMTA to implement the Consent Decree.

Load Factor Standards

The Consent Decree contains specific targets for reducing loading standards by the year 2002. The LACMTA is required to reduce the target load factor on buses operating during peak periods from 1.45 (19 standees) to 1.35 (15 standees) by December 31, 1997; to 1.25 (11 standees) by June 30, 2000; and to 1.20 (9 standees) by June 30, 2002.

Pursuant to its remediation plan, the LACMTA added a total of 130 buses to peak hour service between June 1999 and December 1999. The peak bus fleet was increased by 96 buses between December 1998 and June 1999, with an additional 64 buses added in December 1999.

The addition of these buses enabled the LACMTA to meet a required peak period load factor target of 1.25 (11 standees) by June 30, 2000.

The final load factor target required by the Consent Decree is a peak period load factor of 1.20 (9 standees) by June 30, 2002. In compliance with the Special Master and court order, the LACMTA added 91 buses into service in October 2001.

In compliance with a ruling received in January 2003, the LACMTA has agreed to add extra service to reduce overcrowding on specific lines. This service was added in June 2003.

FY05 Bus Service Expansion

On January 12, 2004, the LACMTA received a Final Order directing the agency to further expand bus service by December 2004. To meet the service expansion requirements of the Order, a service plan was developed that expanded service by approximately 208,000 annualized revenue hours. A total of 83,000 revenue hours of bus service were added in June 2004, with another 250,500 revenue hours added in December 2004.


FY06 Budget

VII-48 • Appendix 16: Consent Decree Appendix

Five-Year New Service Plan

The Consent Decree requires the LACMTA to develop and implement a five-year plan of improvements to the bus system to expand mobility for the transit-dependent community in the greater Los Angeles area. The LACMTA implemented a Pilot Program of new bus service between 1997 and 2000 and continues to expand the Metro Rapid service network in accordance with the New Service Plan.

Fares

The LACMTA did not increase fares from the beginning of the Consent Decree in 1996 through December 2003. Sale of the weekly pass began in December 1996. A base off-peak discount fare of $0.75 was introduced in 1997 on Line 40 and all lines operating late night/early morning (9pm-5am) service.


FY06 Budget

Appendix Appendix 17: GFOA Award • VII-49

APPENDIX 17: GFOA AWARD

The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Los Angeles County Metropolitan Transportation Authority, California, for its annual budget for the fiscal year beginning July 1, 2004 (FY05). In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy

document, as an operations guide, as a financial plan, and as a communications device.

This award is valid for a period of one year only. LACMTA believes the current budget continues to conform to program requirements, and it will be submitted to GFOA to determine its eligibility for another award.


FY06 Budget

VII-50 • Appendix 17: GFOA Award Appendix

VIII. Glossary


FY06 Budget

Glossary Terms • VIII-1

TERMS

ABC Activity-based cost. Methodology that measures the cost and performance of activities, resources, and cost objects. Resources are assigned to activities, then activities are assigned to cost objectives based on their use. ABC recognizes the causal relationships of cost drivers to activities.

ACCRUAL BASIS A method of accounting that recognizes increases and decreases in economic resources as soon as the underlying event or transaction occurs. Under accrual accounting, revenues are recognized as soon as they are earned and expenses are recognized as soon as a liability is incurred, regardless of the timing of related cash flows.

ACTUARIAL ANALYSIS

Analysis completed and submitted by an individual versed in the collection and interpretation of numerical data (especially someone who uses statistics to calculate insurance premiums).

ADA Americans with Disabilities Act. A comprehensive civil rights measure signed into law on July 1990 to ensure persons with disabilities receive equal access to transportation and other services.

AFSCME American Federation of State, County and Municipal Employees. The union representing maintenance and transportation supervisors.

ALTERNATIVE FUELS Low-polluting fuels that are used to propel a vehicle instead of high-sulfur diesel or gasoline. Examples include methanol, ethanol, propane or compressed natural gas, liquid natural gas, low-sulfur or "clean" diesel and electricity.

ARTICULATED BUS An extra long (54 ft. to 60 ft.), high-capacity bus with two connected passenger compartments. The rear body section is connected to the main body by a joint mechanism that allows the vehicle to bend when in operation for sharp turns and yet has a continuous interior.

ASI Access Services, Incorporated. ASI is a private non-profit corporation, which is the Consolidated Transportation Services Agency (CTSA) for Los Angeles County and, as such, has the responsibility to improve and coordinate the paratransit services for 187 different social service and public paratransit operators.

ATMS Advanced Transportation Management System. A state-of-the-art communications package being installed in Metro’s active bus fleet and at the bus operations control center.

ATU Amalgamated Transit Union. The union representing mechanics and other maintenance employees.


FY06 Budget

VIII-2 • Terms Glossary

ATVC Advanced Technology Vehicle Consortium. An independent non-profit California public corporation organized and funded by Metro, City of Los Angeles, Los Angeles County, and Air Quality Management District as a working unit to promote clean air vehicles and advanced technologies.

BAD Benefit Assessment District. A limited area around public transportation stations in which non-residential property owners are taxed for benefits derived from proximity to the system.

BIAS Budget Information Analysis System. A computerized database application designed to enable departments (cost centers) to enter their budget requests and justify those requests.

BIG RIG A common reference to a commercial semi truck, tractor-trailer, or eighteen-wheeler used to haul freight on public highways.

BOARDINGS Number of passengers entering a vehicle of a public transportation system. Passengers are counted each time they enter a vehicle, no matter how many vehicles are used from trip origin to destination. Also known as an unlinked passenger trip.

BOND An interest-bearing promise to pay a specified sum of money on a specified date.

BOS Bus Operations Subcommittee. A subcommittee of the Technical Advisory Committee (TAC). BOS is composed of the 17 bus-operating agencies within Los Angeles County.

BRT Bus rapid transit. Bus service operated on exclusive rights-of-way (busway) and on short stretches of street lanes designated for bus use.

BSIP Bus Service Improvement Program. Program to provide additional buses on existing lines to relieve overcrowding.

BUDGET A plan of financial operations for a given period including proposed expenditures and revenues, and authorized staffing levels.

CAFR Comprehensive Annual Financial Report. LACMTA’s annual financial statements.

CALTRANS California Department of Transportation. Caltrans is responsible for the design, construction, maintenance, and operation of the California State Highway System, as well as that portion of the Interstate Highway System within the state's boundaries.


FY06 Budget


CAPITAL ASSET The acquisition of property, facility, or equipment whose cost exceeds $2,500 per unit. Capital project costs include installation, delivery cost, sales and use taxes, and general & administrative overhead costs.

CAPITAL PROGRAM (CP)

A portfolio of capital projects and their funding.

CAPITAL PROJECT Major construction, acquisition, or renovation activities that add value to a government’s physical assets or significantly increase their useful life.

CASH BASIS A basis for keeping accounts whereby revenue and expense are recorded on the books of account when received and paid, respectively, without regard to the period to which they apply.

CBD Central Business District. An area of high land valuation characterized by a high concentration of retail businesses, service businesses, offices, hotels, and theaters, as well as by a high traffic flow.

CFP Call for projects. Primary process for the selection of transportation improvement projects for funding with discretionary federal, state, and local revenues.

CMAQ Congestion Mitigation and Air Quality. Federal funds available for either transit or highway projects that contribute significantly to reducing automobile emissions that cause air pollution.

CNG Compressed natural gas. Natural gas in high-pressure surface containers that is highly compressed (though not to the point of liquefaction). CNG is used extensively as a transportation fuel for automobiles, trucks and buses.

COMMERCIAL PAPER Short-term interest-bearing promissory note secured by pledged revenues and a liquidity/credit facility.

CORRIDOR A defined metropolitan area considered for significant transportation projects such as highway improvements, bus transitways, light rail lines, bikeways, etc.

CP&D Countywide Planning & Development. Metro department responsible for providing MTA with nationally-recognized leadership, expertise and capability in program development, policy planning and technical analysis in the implementation of transportation system improvements and in the management of travel demand.

CPI Consumer Price Index. A statistical description of price levels provided by the U.S. Department of Labor. The index is used as a measure of the increase in the cost of living.


FY06 Budget


CPUC California Public Utilities Commission. The Commission regulates privately owned electric, telecommunications, natural gas, water and transportation companies, in addition to household goods movers and rail safety.

CTC California Transportation Commission. The Commission is responsible for the programming and allocating of funds for the construction of highway, passenger rail and transit improvements throughout California.

CTSA Consolidated Transportation Services Agency. The LACMTA has been designated as the CTSA for Los Angeles County to coordinate all paratransit services to ensure compliance with the Americans with Disabilities Act (ADA).

DBE Disadvantaged Business Enterprise. Businesses owned and operated primarily by minorities and women.

DEBT PROGRAM Activities related to current and planned debt service requirements and their funding.

DOT United States Department of Transportation. A Federal department responsible for ensuring a fast, safe, efficient, accessible and convenient national transportation system.

EEO/AA Equal Employment Opportunity/Affirmative Action. Federal laws prohibiting job discrimination.

EIR Environmental Impact Report. A detailed statement describing and analyzing the significant environmental effects of a project, and discussing ways to mitigate or avoid those effects.

ENCUMBRANCES Commitments related to unperformed contracts for goods or services.

ENTERPRISE FUND Fund established to finance and account for the operation and maintenance of facilities and services that are entirely or predominantly self-supporting. Includes related capital and debt activity.

EZ PASS The regional EZ Pass is a monthly pass offered to customers that provides seamless riding among Los Angeles County's sixteen Municipal transit operators and Metro bus and rail services.

FAP Formula Allocation Program. FAP is the adopted method for allocation of federal, state, and local transit operating subsidies to Los Angeles County bus operators. The current formula allocates funds as follows: 50% based on vehicle service miles and 50% based on “fare units”. Allocations are made using audited performance data.


FY06 Budget


ARE The price paid to ride public transportation such as a bus or train.

FAREBOX RECOVERY RATIO

Farebox revenue divided by operating costs.

FASB Financial Accounting Standards Board. The Board establishes and improves standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information.

FAU Federal Aid Urban. Authorized by the enactment of the Federal Highway Act every five years. Cities and the county are eligible for FAU funds for projects such as street reconstruction and widening, and installation of lights and signals.

FEIS Federal Environmental Impact Statement. A comprehensive study of likely environmental impacts resulting from major federally assisted projects; the National Environmental Policy Act (NEPA) requires these statements.

FIDUCIARY FUNDS Financial resources held or managed in an agent or fiduciary capacity.

FIS Financial Information System. The LACMTA’s automated, integrated financial accounting and control system.

FISCAL YEAR The period at the end of which a governmental agency determines its financial position and results of operations. The LACMTA’s fiscal year begins July 1 and ends June 30 of the following calendar year.

FIXED ASSETS Assets of long-term character that are intended to continue to be held or used, such as land, buildings, machinery, furniture, and other equipment.

FIXED GUIDEWAY SYSTEM

A system of vehicles that can operate only on its own guideway constructed for that purpose (e.g., commuter rail, light rail). Federal usage in funding legislation also includes exclusive right-of-way bus operations.

FREIGHT MOVEMENT PROGRAM

A strategic plan being developed by LACMTA to address future goods movement growth throughout the county.

FSP Metro Freeway Service Patrol. Funded by LACMTA, these contracted towing services remove stalled vehicles from peak period congested freeways. The service is managed by MTA in conjunction with the California Highway Patrol and Caltrans.


FY06 Budget


FTA Federal Transit Administration. The Federal government, through the FTA, provides financial assistance to develop new transit systems and improve, maintain, and operate existing systems.

FTE Full-time equivalent position. A part-time position is converted to the decimal equivalent of a full-time position based on 2,080 hours per year. For example, a part-time typist working for 20 hours per week would be the equivalent to a .5 of a full-time position.

FUNCTION An activity or a group of related activities for which the reporting unit is responsible.

FUND A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources together with all related liabilities and changes in these assets and liabilities.

FUND BALANCE Fund equity in governmental funds - the difference between fund assets and liabilities.

FY Fiscal year. The period at the end of which a governmental agency determines its financial position and results of operations. The Metro fiscal year begins July 1 and ends June 30.

GASB Governmental Accounting Standards Board. The Board establishes and improves standards of state and local governmental accounting and financial reporting, resulting in useful information for users of financial reports, and educates the public, including issuers, auditors, and users of those financial reports.

GENERAL AND ADMINISTRATIVE (G&A) COSTS

All activities associated with general administration of the transit agency, including transit service development, injuries and damages, safety, personnel administration, legal services, insurance, data processing, finance and accounting, purchasing and stores, engineering, real estate management, office management and services, customer services, promotion, market research and planning.

GENERAL FUND Fund used to account for those financial resources that are not required to be accounted for in any other fund.

GOVERNMENTAL FUNDS

Two fund types are used to account for the agency’s governmental-type activities: the General Fund, and the Special Revenue Fund. See applicable descriptions herein.

GR General Relief Token Program. Metro program that provides tokens for transportation of homeless/indigent persons.


FY06 Budget


HEAVY RAIL High-speed passenger rail cars operating singly or in trains of two or more cars on fixed rails in separate rights-of-way from which all other vehicular and foot traffic is excluded.

HOV High occupancy vehicle lanes or carpool lanes on freeways dedicated for use by vehicles with multiple occupants.

HUB MILES The mileage operated by each bus based on the reading of the bus odometer, located on the hub of a rear axle, which usually is read during the daily fueling of the bus. This is the mileage data used to schedule the preventive and planned maintenance.

IFB Invitation for bids. An advertised competitive solicitation for fixed price bids. Awards are made to the responsive, responsible bidder that submits the lowest price.

IMMEDIATE NEEDS TRANSPORTATION PROGRAM

A program started after the Los Angeles riots to distribute taxi vouchers and bus tokens in Los Angeles County.

ITS Information Technology Services. The department that provides the computer services function at Metro.

JOINT DEVELOPMENT Projects that combine public and private resources to build mixed use development around transit station areas.

JPA Joint Powers Authority. A voluntary association of government entities formed into a special purpose agency to deal with a common problem or problems, carry out a specific project, or provide a specific service, for example, the operation of a regional transit system.

KEY PERFORMANCE INDICATORS

Indicators that measure and analyze performance in terms of quantity, effectiveness or efficiency.

LA LIGHT RAIL VEHICLE CAR

Los Angeles Light Rail Vehicle Car. The LA Light Rail Vehicle Car is a generic vehicle designed for the LACMTA for use on light rail lines.

LACMTA Los Angeles County Metropolitan Transportation Authority. Serves as transportation planner and coordinator, designer, builder and operator for one of the country’s largest counties. Also referred to as MTA or METRO.

LOA Letter of agreement. A written agreement.

LIGHT RAIL Lightweight passenger rail cars operating on fixed rails in right-of-way that is not separated from other traffic for much of the way. Light rail vehicles are driven electronically with power drawn from an overhead electric line (catenary).


FY06 Budget


LOCAL RETURN Local return is a direct share, based on population, that the 88 cities and the Los Angeles County receive from the total Propositions A and C sales tax revenue. These funds are used to support transit needs or other transportation related projects, including paratransit and fixed route service, street and road maintenance and other transit related improvements.

LRT Light rail transit. Modern-day term for a streetcar-type of transit operation.

LRTP Long Range Transportation Plan. A 25-year plan for multi-modal transportation needs of Los Angeles County.

LRV Light rail vehicle. Electrically propelled passenger carrying rail vehicle.

M3 Maintenance & Material Management System. A materiel, equipment, and facilities management system that automates the control, planning, acquisition and distribution of inventory and tracking of maintenance activities.

METRO Preferred nickname for and reference to the Los Angeles County Metropolitan Transportation Authority (LACMTA).

METRO BLUE LINE Long Beach-Los Angeles Light Rail Transit Project. A 22-mile light rail line constructed by the LACMTA. The line opened for service July 14, 1990.

METRO EXPOSITION LINE

Culver City-Los Angeles Mid-City/Exposition Light Rail Transit Project. A 9.6-mile light rail line currently in the planning stage.

METRO GOLD LINE Union Station-Pasadena Light Rail Transit Project. A 13.7-mile light rail line constructed by the Metro Blue Line Construction Authority. The line opened for revenue service July 28, 2003.

METRO GOLD LINE EASTSIDE EXTENSION

A 6-mile Metro Gold Line light rail transit extension planned to provide service between Union Station and East Los Angeles. The line is scheduled to open in 2009.

METRO GREEN LINE Norwalk-El Segundo Light Rail Transit Project. A 20-mile light rail line constructed by the LACMTA on the median of the I-105 freeway. The line opened for service August 12, 1995.

METRO ORANGE LINE A 14-mile Metro Rapidway being built on a former Southern Pacific Railroad right-of-way between the North Hollywood Metro Rail Station and Warner Center in Woodland Hills. Service is scheduled to begin in Summer 2005.


FY06 Budget


METRO RAPID Bus service on arterial streets with several attributes to improve service operating speeds including traffic signal priority, level boarding and alighting with low floor buses, fewer stops, and active management of service operation.

METRO RAPIDWAY LACMTA’s BRT service on a dedicated right-of-way. See Metro Orange Line.

METRO RED LINE – SEGMENT I

Segment I of the Metro Rail project constructed by the LACMTA from Union Station to Wilshire/Alvarado (4.4 miles). Operation began in January 1993.

METRO RED LINE – SEGMENT II

Segment II includes Wilshire/Alvarado west to Wilshire/Western, which opened for service in August 1996, and Wilshire/Vermont north to Hollywood/Vine, which opened for service in June 1999.

METRO RED LINE – SEGMENT III

Segment III of the Metro Rail project includes Hollywood/Vine to North Hollywood, which opened for service in June 2000.

METROLINK The regional commuter rail system connecting Los Angeles, Orange, Riverside, San Bernardino, and Ventura counties. Service began in October 1992.

MIS Major Investment Study. The study is required by the FTA to obtain federal funds for any major capital improvement.

MISSION STATEMENT A brief statement that summarizes an organization’s purpose, intent, and commitment.

MODE A particular form of transportation identified by the vehicle or mode used i.e. bus, light rail, heavy rail, car, bike, or foot.

MODIFIED ACCRUAL BASIS

A method of accounting that recognizes increases and decreases in financial resources only to the extent that they reflect near-term inflows or outflows of cash. Under modified accrual accounting, amounts are recognized as revenue when earned, only so long as they are collectible within the period or soon enough afterwards to be used to pay liabilities of the current period.

MOSIP Municipal Operator Service Improvement Program. The program was created in 1999 to provide Los Angeles County's transit operators with funding from Proposition C 40% discretionary to alleviate overcrowding on their transit systems.

MOU Memorandum of Understanding. A formal contractual agreement between two or more public agencies.


FY06 Budget


MOW Maintenance of way. Also known as Wayside Maintenance. The maintenance of rail operations fixed plant and equipment other than transit vehicles.

MTA Metropolitan Transportation Authority. Also known as LACMTA or METRO.

MULTIMODAL Public transportation system, which employs a combination of highway, bus, rail, HOV, bikeway, pedestrian land use, and demand management systems.

MUNICIPAL OPERATOR

A city or county (including any non-profit corporation or other legal entity wholly-owned or controlled by the city or county) which operates a public transportation system, or which on July 1, 1972, financially supported in whole or in part a privately-owned public transportation system and which is not included within an existing transit district.

NEW START Federal funding granted under section 3(i) of the Federal Transit Act. These discretionary funds are made available for construction of a new fixed guideway system or extension of any existing fixed guideway system, based on cost-effectiveness, alternatives analysis results and the degree of local financial commitment.

NON-REVENUE VEHICLES

Vehicles that do not carry fare-paying passengers.

NTD National Transit Database. A database consisting of financial and operational information for over 600 U.S. transit agencies that receive FTA Section 5307 grants.

OBJECTIVE Time-phased measurable accomplishment required realizing the successful completion of a strategic goal.

OCIP Owner-controlled insurance program. OCIP self-insurance coverage includes workers’ compensation, employer’s liability, bodily injury and property damage liability, builder’s risk (property), and railroad protective liability.

OMB Office of Management and Budget. Metro department that develops and coordinates the agency budget activities.

OVERHEAD Expenses not directly chargeable to a particular program, which support multiple programs of the LACMTA.

OVERHEAD CATENARY

An overhead contact wire system that supplies power from a central power source to a rail vehicle or trolley bus.


FY06 Budget


PARATRANSIT Flexible forms of transportation services that are not confined to a fixed route. Paratransit is generally used to provide service for people with disabilities in compliance with the Americans With Disabilities Act of 1990 (ADA).

PASSENGER MILES The cumulative distance ridden by passengers.

PERFORMANCE INDICATORS

Specific quantitative and qualitative measure of work performed as an objective of specific departments or programs.

PERFORMANCE MEASURES

Data collected to determine how effective or efficient a department or program is in achieving its objectives.

PRE-QUALIFICATION PROGRAM

A program that assures that Metro enters into contracts only with qualified firms.

PROGRAM A group of related activities performed by one or more organizational units for the purpose of accomplishing a function for which the government is responsible.

PROP A Proposition A is a sales tax initiative approved by the Los Angeles County voters in 1980. The proposition established a one-half cent sales tax to be used for public transportation purposes.

PROP C Proposition C is a sales tax initiative approved by the Los Angeles County voters in 1990. The proposition established a one half-cent sales tax to be used for public transportation purposes.

PROPRIETARY FUND A fund type that is used to account for business-type activities, i.e., activities that receive a significant portion of their funding through user charges. See Enterprise Fund.

PTSC Public Transportation Services Corporation. Created by the LACMTA in December 1996, the PTSC is a non-profit public benefit corporation organized under the laws of the State of California.

REVENUE SERVICE HOURS (RSH)

Total number of scheduled hours that a bus or train is in service. This total excludes hours spent traveling to and from storage facilities and during other non-service travel. Also referred to as Revenue Vehicle Service Hours (RVSH).

REVENUE VEHICLE Vehicles that carry fare-paying passengers.

REVENUE VEHICLE MILES

Total miles traveled by a revenue vehicle used to provide public transportation. Excludes miles spent traveling to and from storage facilities and on other non-service travel.

RFP Request for proposal. The competitive proposal method of procurement. Award is made on a negotiated fixed price or cost reimbursement basis.


FY06 Budget


ROD Revenue operations date. The date revenue operations begin.

RTAA Regional Transit Alternatives Analysis. A projection that identifies future funding availability through fiscal year 2010.

SAFE Service Authority for Freeway Emergencies. One dollar from each vehicle registration within Los Angeles County is used to provide expanded and improved emergency call box service along the highways. SAFE is a separate legal entity.

SANBAG San Bernardino Associated Governments. The council of governments and transportation planning agency for San Bernardino County.

SBE Small Business Enterprise. Businesses in which more than 50% of the business is owned and operated primarily by socially or economically disadvantaged individuals.

SBU Strategic Business Unit. Metro is organized into seven strategic business units: Board of Directors, Chief of Staff, Communications, Construction Project Management, Countywide Planning & Development, Support Services, and Transit Operations.

SCADA Supervisory Control and Data Acquisition system. A system used by Rail Operations to regulate, direct, and modify train movement and to monitor the functional state of rail facilities (e.g. rail signals, switches, electricity loads, station ventilation, security, etc.).

SCAG Southern California Association of Governments. SCAG is mandated by the federal government as the Metropolitan Planning Organization (MPO) for six counties (Los Angeles, Orange, San Bernardino, Riverside, Ventura and Imperial). Its mission is to research and develop plans for transportation, growth management, hazardous waste management, and air quality.

SCAQMD South Coast Air Quality Management District. The air pollution control agency for the four-county region including Los Angeles and Orange counties and parts of Riverside and San Bernardino counties.

SCORECARD A system that graphically displays the status of many agency key performance indicators. The Scorecard (also referred to as the CEO Scorecard) measures plans against results and displays historical data, current totals, targets, and forecasts so users can easily assess progress, monitor trends, and identify best practices.


FY06 Budget


SCRRA Southern California Regional Rail Authority. A joint powers agency including Los Angeles, Orange, Riverside, San Bernardino, and Ventura Counties formed to plan, construct, and operate the regional commuter rail system known as Metrolink.

SERVICE SECTOR Five geographic bus service areas of Metro managed by a General Manager with oversight from an independent, appointed local council. The five sectors are known as Metro San Fernando Valley, Metro San Gabriel Valley, Metro South Bay, Metro Gateway Cities, and Metro Westside-Central.

SHORE Support for Homeless Re-entry Program. The LACMTA provides bus tokens to Los Angeles County shelters and missions.

SPECIAL REVENUE FUND

Fund used to account for specific revenue sources (other than major capital projects) that are restricted for specified purposes.

SRTP Short Range Transportation Plan. A planning document with five-year projections that describes goals and objectives of each transit operator in the county; provides estimates of ridership, services and expenses; and outlines proposed service modifications.

STA State Transit Assistance fund. Used to account for the revenue from the sales tax on gasoline used for transit purposes. The STA fund was created as an amendment to the Transportation Development Act of 1976.

STIP State Transportation Improvement Program. The California Transportation Commission (CTC) adopted this program that serves as the primary vehicle for programming funds for highway projects.

TAC Technical Advisory Committee. Composed of agency staff that meet to discuss technical transportation policy issues.

TAP Transit Access Pass. A thin plastic card the size of a credit card with an embedded microprocessor commonly referred to as a “smart card”. Used as fare media in stored-value collection systems for multi-modal transit operations.

TCU Transportation Communications Union. The union representing selected clerical office employees, telephone information clerks, custodial staff, and stores personnel.

TDA Transportation Development Act. Created by state law in 1972, the TDA authorized the use of ¼ of 1% of the state sales tax for transportation purposes. 1% of this revenue is allocated to the LACMTA for its transportation planning activities.


FY06 Budget


TEA-21 Transportation Equity Act for the 21st Century. On June 9, 1998, the President signed the Transportation Equity Act for the 21st Century (TEA-21) authorizing highway, highway safety, transit and other surface transportation programs for the next six years.

TEAMSTERS International Brotherhood of Teamsters (IBT). Union representing security guards.

TIP Transportation Improvement Program. The programming document, which establishes allocation of funding for Los Angeles County highways and transit systems.

TOTS Transit Operating and Trend System. A system that collects and reports bus operator salary data.

TSM Transportation Systems Management. A program of user incentives and disincentives to maximize capacity and usage of the existing transportation network.

TVM Ticket Vending Machine. Vending machines located at transit station entrances for the purchase of tickets.

UFS Universal Fare System. Fare collection equipment that will enable the region’s customers to travel seamlessly and ensure compatibility with other transit systems within Los Angeles County.

UNLINKED PASSENGER TRIP

The boarding of one passenger on a transit vehicle in revenue service.

UTU United Transportation Union. Union representing bus and rail operators and other operations employees.

WAYFINDING The orderly presentation of information needed to let people comfortably and successfully navigate in an environment. While signage is the primary tool used to communicate that information, it is not the only one.

WAYSIDE EQUIPMENT

A system for automatically controlling train movement, enforcing train safety, and directing train operations by computers.

IX. Abbreviations


FY06 Budget

Abbreviations Abbreviations • IX-1

ABBREVIATIONS

ABC Activity-based costing

ADA Americans with Disabilities Act

AFSCME American Federation of State, County, and Municipal Employees

ASI Access Services, Incorporated

ATMS Advanced Transportation Management System

ATU Amalgamated Transit Union

ATVC Advanced Technology Vehicle Consortium

BAD Benefit Assessment District

BIAS Budget Information Analysis System

BOS Bus Operations Subcommittee

BRT Bus Rapid Transit

BSIP Bus Service Improvement Program

CAFR Comprehensive Annual Financial Report

CALTRANS California Department of Transportation

CBD Central Business District

CCIP Contractor-controlled insurance program

CFP Call for projects

CHP California Highway Patrol

CMAQ Congestion Mitigation and Air Quality

CNG Compressed natural gas

CP Capital Program

CP&D Countywide Planning and Development

CPI Consumer Price Index

CPUC California Public Utilities Commission

CTC California Transportation Commission

CTSA Consolidated Transportation Services Agency


FY06 Budget

IX-2 • Abbreviations Abbreviations

DBE Disadvantaged Business Enterprise

DOT Department of Transportation (United States)

EEO/AA Equal Employment Opportunity/Affirmative Action

EF Enterprise Fund

EIR Environmental Impact Report

FAP Formula Allocation Program

FASB Financial Accounting Standards Board

FAU Federal Aid Urban

FEIS Federal Environmental Impact Statement

FIS Financial Information System

FSP Freeway Service Patrol

FTA Federal Transit Administration

FTE Full time equivalent

FY Fiscal year

GASB Governmental Accounting Standards Board

GF General Fund

GR General Relief Token Program

HOV High occupancy vehicle

IBT International Brotherhood of Teamsters

IFB Invitation for bids

ITS Information Technology Services

JPA Joint Powers Authority

KPI Key Performance Indicator

LACMTA Los Angeles County Metropolitan Transportation Authority

LOA Letter of agreement

LRT Light rail transit

LRTP Long Range Transportation Plan

LRV Light rail vehicle


FY06 Budget

Abbreviations Abbreviations • IX-3

M3 Maintenance and Material Management System

METRO Los Angeles County Metropolitan Transportation Authority

MIS Major Investment Study

MOSIP Municipal Operator Service Improvement Program

MOU Memorandum of Understanding

MOW Maintenance of way

MTA Metropolitan Transportation Authority

NC Non-Contract

NTD National Transit Database

OCIP Owner-controlled insurance program

OMB Office of Management and Budget

OTP On-time performance

PBLCA Pasadena Blue Line Construction Authority

PROP A Proposition A

PROP C Proposition C

PTSC Public Transportation Services Corporation

RFP Request for proposal

ROD Revenue operations date

RSH Revenue service hours

RTAA Regional Transit Alternatives Analysis

RVSH Revenue vehicle service hours

SAFE Service Authority for Freeway Emergencies

SANBAG San Bernardino Associated Governments

SBE Small Business Enterprise

SBU Strategic Business Unit

SCADA Supervisory Control and Data Acquisition system

SCAG Southern California Association of Governments

SCAQMD South Coast Air Quality Management District


FY06 Budget

IX-4 • Abbreviations Abbreviations

SCRRA Southern California Regional Rail Authority

SHORE Support for Homeless Re-entry Program

SRF Special Revenue Fund

SRTP Short Range Transportation Plan

STA State Transit Assistance Fund

STIP State Transportation Improvement Program

TAC Technical Advisory Committee

TAP Transit Access Pass

TCU Transportation Communications Union

TDA Transportation Development Act

TEA-21 Transportation Equity Act for the 21st Century

TIP Transportation Improvement Program

TOTS Transit Operating and Trend System

TSM Transportation Systems Management

TVM Ticket vending machine

UFS Universal Fare System

UTU United Transportation Union

WE Wage expense

Documents

FY06 Budget - Metro Bus